— David Keller, CMT (@DKellerCMT) January 19, 2021
Today’s Chart of the Day was shared on Twitter by David Keller (@DKellerCMT). It’s a chart of the S&P 500 over the past year, along with four different cumulative advance-decline lines. These breadth indicators often lead the broader market higher/lower. They’ll often form some sort of bearish divergence before a meaningful top in S&P 500. But as David points out, we’re not seeing any such divergence right now. Instead, these advance-decline lines are continuing to make higher highs and higher lows along with the S&P 500. In other words, they’re confirming the trend higher. Until that changes, why fight the trend?