Cumulative Market Breadth Divergence (Preview)

Posted on May 13, 2016 - 12:54pm

ryanbrennan's blog

By Lawrence G. McMillan

Let’s discuss cumulative breadth for a moment. Cumulative breadth is merely the running total of daily advances minus declines.

I have seen several technical analysts – both in print and on TV – saying that there is not a cumulative breadth divergence any longer. I completely disagree. Yes, the NYSE cumulative advance-decline has made new highs, but it is a misleading indicator because there are a lot of non-stocks in that data. When one uses “stocks only” data, a different picture arises.

Our “stocks only” data encompasses all optionable stocks, so it is quite representative of the entire stock universe. There are plenty of NASDAQ stocks, as well as all the large-caps...

Cumulative Market Breadth Divergence

Read the full feature article (published 5/13/16) by subscribing to The Option Strategist Newsletter.

ryanbrennan's blog

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