The S&P 1500 AD Line ($SUPADP), which is a key breadth indicator, has yet to break support and remains in bull mode. Notice how the AD Line established lows from mid July to early August. These lows mark a support zone that chartists should watch for clues on market direction. A break below support would signal an increase in selling pressure and argue for a correction. You can read more about
StockCharts breadth data in our ChartSchool.
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Click this image for a live chart
About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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