The last post gave the bears’ case. Here is a far more optimistic view, “S&P A/D Reading Worst in Ten Years – Rebound Likely Tomorrow,” from Seeking Alpha. FYI, Birinyi is as noted a bull as Roubini is a bear. And they both could be right. Birinyi, after all, is only forecasting today’s results:
Birinyi’s Ticker Sense submits: As a follow up to our prior post, the S&P 500 A/D line got much worse, along with the performance of the index itself. For the day, just two stocks in the index closed up — RSH and STR, leaving the A/D line at -498. This ties 7/6/01 for the worst reading in the past ten years.
Below, we list the weakest S&P 500 A/D readings since 1997 and show the next day performance of the index as well. As shown, the index has gone up 73% of the time the next day for an average gain of 1.19%.
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Hi,
Once again after crash Nifty has started going up. Now we suggest all rises should be used as an opportunity to exit old long positions.
This bull run will continue for few more days. Overall market is in bearish mood as in medium term its just a small rally due to short covering
and result season.
Happy Trading,
ShareGyan
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