Equities near decision point on three-year bull move

First, our Daily Most Actives Advance/Decline Line (MAAD) does not look as bullish as S&P 500 pricing. Although it’s true the indicator bottomed on June 4 when the S&P hit its nadir and has rallied along with S&P prices since then, whereas the S&Ps low on June 4 was at 1266.77, MAAD was plotted at an S&P equivalent level of about 1210. Currently, while the S&P is trading at 1362 and change, MAAD has only recovered to about 1270. That divergence between the S&P and MAAD is an indication that while Smart Money bought into the June 4 lows, it has not been as enthusiastic as S&P pricing since then. There is also the fact that our MAAD Daily Ratio, last near 1.07 in “Neutral” territory, could reach “Overbought” regions again with relative ease. In other words, it’s starting from a higher level than was the case back on June 4. Adding to the mix, our Weekly MAAD stats currently show moderately “Oversold” conditions that could “allow” for some additional short-term strength. But will Weekly MAAD Ratio moderately “Oversold” levels be enough to suggest the market is poised to not only continue the short-term rally, but to also turn the still negative Intermediate Cycle positive with follow through strength to new highs?

Daily S & P 500 with Cumulative Volume (CV)

Weekly S & P 500 with Cumulative Volume (CV)

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