$SPY above its June low, however $SPY A/D line is below its June low pic.twitter.com/vzAVaMg00B
— Stacey.A.Lee (@BBaxter2020) October 20, 2022
Today’s Chart of the Day was shared by Stacey Lee (@BBaxter2020), It’s a daily candlestick chart of the S&P 500 over the past year, along with its Advance/Decline line in the lower panel. The recent bounce has been pretty unimpressive so far. It hasn’t been the type of energetic reaction that you’d expect to see at a bottom. Instead, it’s been a choppy mess where every rally attempt gets faded. The S&P continues to hold above its June low, however, Stacey points out that the Advance/Decline line is back below its respective June low. The Advance/Decline line often leads the broader market higher or lower. This is just one of many data points out there, but it’s not confirming the start of a new leg higher just yet.