Bear Market Beware, the A/D is at an all time high

By Marc DeCambre

One widely used signal of the health of the stock market has hit an all-time high, potentially setting the stage for a further rally by U.S. equity benchmarks, say technical analysts.

The New York Stock Exchange’s advance/decline line touched an all-time high on Wednesday, as seen in the chart below from StockCharts:

Paul Schatz, the president of Heritage Capital, told MarketWatch in a phone interview that “bear markets never, ever, ever begin when the A/D line is making an all-time high.”

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