Jan
12

Steadily Improving Breadth

By on Wednesday, January 12th, 2011 at 3:19 pm

When breadth improves four consecutive sessions, buying power is usually exhausted for the short-term, leading to a flat-to-down day the following session. The last thirty times that the NYSE advance/decline ratio initially improved from the previous session on four consecutive days are listed below…

NYSE Breadth Improves Four Consecutive Sessions
08/17/10… S&P500 +0.2% next session
12/14/09… S&P500 -0.6% next session
06/19/09… S&P500 -3.1% next session
01/28/09… S&P500 -3.3% next session
07/19/06… S&P500 -0.9% next session
06/09/06… S&P500 -1.3% next session
09/26/05… S&P500 +0.0% next session
08/11/05… S&P500 -0.6% next session
04/07/05… S&P500 -0.8% next session
11/12/04… S&P500 -0.0% next session
05/25/04… S&P500 +0.2% next session
08/28/03… S&P500 +0.5% next session
05/31/02… S&P500 -2.5% next session
06/28/01… S&P500 -0.1% next session
10/31/00… S&P500 -0.6% next session
06/28/00… S&P500 -0.9% next session
02/03/00… S&P500 -0.0% next session
06/16/99… S&P500 +0.7% next session  (*)
05/20/99… S&P500 -0.6% next session
11/02/98… S&P500 -0.1% next session
12/01/97… S&P500 -0.3% next session
07/30/97… S&P500 +0.2% next session
03/04/97… S&P500 +1.4% next session  (*)
08/02/96… S&P500 -0.3% next session
10/13/95… S&P500 -0.3% next session
09/05/95… S&P500 +0.2% next session
02/23/95… S&P500 +0.3% next session
12/14/94… S&P500 +0.1% next session
10/28/94… S&P500 -0.3% next session
10/11/94… S&P500 -0.1% next session

The S&P closed lower the next session in 20 of the last 30 occurrences (67%) vs. a 46% random chance. The S&P gained more than 0.5% only two times vs. eleven instances of a >0.5% drop. This goes into effect for Thursday’s session as long as the NYSE advance/decline ratio closes over 1.45.

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