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Is the NYSE Index creating a “Double Top” six years later? As we are ending another year, its easy to look back on the broad based index and see that its at the same price as it was 6-years ago, prior to a rather large decline.
Is the market acting stronger or weaker than it was at the same price 6 years ago? Many feel the Advance/Decline line is a good tool to judge the underlying strength of the markets. The above chart reflects that when the market peaked in 2000 & 2007 the adv/dec line was acting weaker/heading lower at (1) & (2).
At this time the adv/dec line is not diverging against the S&P 500, its acting healthier & stronger as its reaching all-time high levels at (3). Could this be a “Double Top” in this broad index? Odds are low that a top is in place until the adv/dec line starts acting much weaker than it is at this time.