Nasdaq Scores with New Highs in AD Line and AD Volume Line

• AD Lines: Bullish. The Nasdaq AD Line surged to a new high in late July. The NYSE AD Line remains in an uptrend, but hit resistance near its May high.    
• AD Volume Lines: Bullish. The Nasdaq AD Volume Line surged to another new high this week. The NYSE AD Volume Line hit a new high in late July.
• Net New Highs: Bullish. Nasdaq and NYSE Net New Highs remain firmly positive and their cumulative lines hit new highs.  
• Bullish Percent Indices: Bullish. All nine BPIs are above 50%. The Materials BPI ($BPMATE) is the weakest at 66.67%.  
• VIX/VXN: Bullish. The S&P 500 Volatility Index ($VIX) and the Nasdaq 100 Volatility Index ($VXN) are back below 15%. I will now set a big resistance zone based on the 2013 highs. 
• Trend-Structure: Bullish. The major index ETFs moved to 52-week highs this week.    
• SPY Momentum: Bullish. All three have been bullish since the second week of July when RSI moved back above 60, MACD(5,35,5) turned positive and the Aroon Oscillator moved back above +50. 
• Offensive Sector Performance: Bullish. The Consumer Discretionary SPDR (XLY) and Industrials SPDR (XLI) are leading with 52-week highs this week. The Finance SPDR (XLF) and the Technology SPDR (XLK) are close to their prior highs. 
• Nasdaq Performance: Bullish. The $COMPQ:$NYC ratio moved to its highest level since September 2012 and remains in an uptrend as the Nasdaq outperforms the NY Composite.
• Small-cap Performance: Bullish. The $RUT:$OEX ratio hit a new high in late July and remains in a clear uptrend. 
• Breadth charts (here) and intermarket charts (here) have been updated.

This table is designed to offer an objective look at current market conditions. It does not aim to pick tops or bottoms. Instead, it seeks to identify noticeable shifts in buying and selling pressure.

This commentary and charts-of-interest are designed to stimulate thinking. This analysis is
not a recommendation to buy, sell, hold or sell short any security (stock ETF or otherwise).
We all need to think for ourselves when it comes to trading our own accounts. First, it is
the only way to really learn. Second, we are the only ones responsible for our decisions.
Think of these charts as food for further analysis. Before making a trade, it is important
to have a plan. Plan the trade and trade the plan. Among other things, this includes setting
a trigger level, a target area and a stop-loss level. It is also important to plan for three
possible price movements: advance, decline or sideways. Have a plan for all three scenarios
BEFORE making the trade. Consider possible holding times. And finally, look at overall market
conditions and sector/industry performance.