The Advance - Decline Line is more positive than yesterday, but still at or below the zero line. The $TICK Indicator has not gone above + 600 all morning. In all, there is still selling pressure in the market. However, the sellers are patient enough to wait until the market tests a resistance point, which this morning happens to be the R1 line.
The bottom chart shows the S&P 500 Index and the Pivot of the Advance - Decline Line. Since last December, when the A-D line pivot touches are goes below -1000, the next day typically closes above the previous day's close. Since last December, this happened 6 out of 8 times.
Charles
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