Broad Market Indicator #5: NYSE A-D 200 Day Moving Average

For this indicator, we look to see if the NYSE Advance-Decline (A-D) is above or below its 200 day moving average. The divergence between the advances and declines is plotted on a chart, and the 200 day moving average is also plotted. Here is what we are looking for:

• Crossing the 200 MA line (above or below) is the most important signal
• The longer the period before the 200 MA line is crossed, the more meaningful the move.
• Most significant moves are made when there is a change in direction from a long-term pattern. Hovering around zero (0) is not significant.
• Bearish signal: A switch from a long-term positive (above the 200 MA) to below the line
• In a Bull Market, the gauge will reach its peak before the Dow (DJIA) reaches its peak.

Let’s take a look at the indicator. If you look at the chart below from Stockcharts.com, the peak for the NYSE A-D was in April. The Dow peaked a month later in May. The interesting thing to note now is that the A-D line has just touched its 200 day ma line. Let’s see if it can break through.

Data Sources:

• Stockcharts using their $NYAD symbol. Look the chart above for the settings I used.
• McClellon Oscillator Site
• New York Stock Exchange NYSE data