Stock Market Update Week Ending Aug 21, 2020 - NYSE vs Dow Trend Chart

The market remains mixed as posted last week.

This week I want to look at a chart from Stan's book that used to be available on the Barron's site but they have since retired it so I make my own. It is the Dow vs. the NYSE Advance-Decline ratio.  We are looking for changes in trend. If both the Dow and NYSE A-D are going in the same direction or are they diverging?

In January they diverted and it turned out to be a signal of the drop. This week we see a potential divergence. What is important to note is that defensive stocks are in favor when the Dow moves up but the NYSE A-D moves down. We need to see if this continues as one week does not make a trend. 

This indicator should not be used on its own.

 

 

 

 

 

 

 

 

 

 

Stockcharts S&P shows the S&P began decline in February.