A short-lived rally. That's what I call yesterday's action. At first glance, the A/D line appears to have put in a good showing. Except if you look at where it was around noontime (plus 600 vs. plus 450 at the close), you will see that the A/D made for much better reading earlier in the day, when the averages were still sort of flat on the day.
If the market were headed higher in a meaningful way, individual stocks would lead the way. We would notice their leadership in the number of stocks at new highs. Instead, the number of stocks at new highs continues to lag.
Investors appear to be taking profits into rallies rather than chasing the buy side as the market rallies. Did you notice the increase in stocks at new lows despite the "up" market we had yesterday?
I remain cautious until the underlying statistics say otherwise.
New Highs and New Lows
Cumulative Advance/Decline Line
Helene Meisler, based in Singapore, writes a technical analysis column on the U.S. equity markets on Tuesdays and Fridays, and updates her charts daily on TheStreet.com. Meisler trained at several Wall Street firms, including Goldman Sachs and Cowen, and has worked with the equity trading department at Cargill. At time of publication, she held no positions in the stocks mentioned in this column, although holdings can change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. She appreciates your feedback at