Bullish divergence of the SP500 and NYSE Advance Decline Line (ADL) is one of the most powerful and reliable "leading" indicators available. Here we see the ADL make a new high (a higher high) while the SP500 does not make a new high. This divergence indicates that market breadth is markly improving, which will ultimately drive the SP500 up to new all time highs in the coming weeks or months.
I am well aware of discussions about bubble fears and valuation concerns. It's important to note that the market can continue to increase for some time even with these concerns, so it would be a mistake to get out of or short the market at this time. Also, the technicals are pointing higher, not lower.
As long as this train keeps chugging, we should stay on this ride! Go long on SPY, VOO, QQQ!!!
I am well aware of discussions about bubble fears and valuation concerns. It's important to note that the market can continue to increase for some time even with these concerns, so it would be a mistake to get out of or short the market at this time. Also, the technicals are pointing higher, not lower.
As long as this train keeps chugging, we should stay on this ride! Go long on SPY, VOO, QQQ!!!
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.