Trading Secrets 27-03-2024 00:04 21 Views

Surprise Negative Divergence on Nasdaq Advance-Decline Line

We were perusing the Advance-Decline Line charts that we have and noticed something that surprised us. The Nasdaq Advance-Decline Line is trending lower while prices continue higher. This is negative divergence we didn't expect to see.

What makes that negative divergence even more interesting is looking at the same Advance-Decline Lines for the SPX and NYSE. Notice there is no negative divergence at all, if anything we see confirmations of the rallies both are experiencing.

Conclusion: We haven't seen any issues with the Nasdaq rally, but this negative divergence could be signaling that the Nasdaq will be the first to show price weakness.


Learn more about DecisionPoint.com:



Watch the latest episode of the DecisionPointTrading Room on DP's YouTube channel here!


Try us out for two weeks with a trial subscription!

Use coupon code: DPTRIAL2 at checkout!

Technical Analysis is a windsock, not a crystal ball. --Carl Swenlin

(c) Copyright 2024 DecisionPoint.com

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

DecisionPoint is not a registered investment advisor. Investment and trading decisions are solely your responsibility. DecisionPoint newsletters, blogs or website materials should NOT be interpreted as a recommendation or solicitation to buy or sell any security or to take any specific action.

Helpful DecisionPoint Links:

Trend Models

Price Momentum Oscillator (PMO)

On Balance Volume

Swenlin Trading Oscillators (STO-B and STO-V)

ITBM and ITVM

SCTR Ranking

Bear Market Rules


Other news

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!