We’ve Been Cheering for Quite a While Now

We’ve Been Cheering for Quite a While Now

Stock market bulls got something to cheer about last week.

Heritage Capital President Paul Schatz noted that New York Stock Exchange’s advance/decline line set a new all-time high this week.

The indicator counts the number of stocks rising on a particular day and subtracts the number of stocks falling and plots the result over time.

“When the major stock market indices make new highs, but the NYSE A/D Line does not, that’s where bulls should begin to worry,” Schatz writes, adding that “the exact opposite is now happening,” which he said was “typically a good sign for further strength in stocks over the medium-term.”

Still, he added the obligatory caution that past performance is no guarantee of future results.

NYSE stock market new highs

 

 

 

 

 

 

 

 

To reinforce our positive opinion regarding the overall economy and the stock market, take a look and read the last few “Monday Morning Outlooks”.