Here is the NYAD annotated chart:
And here is the link for the NAAD if you want to try filling in the trendlines: stockcharts.com 
My take on the NYAD chart above shows: (the NYAD is invisible - you only see the 10 day EMA.)
- The strength of the moves are getting weaker as indecision enters the markets as shown by the green (bullish) trend and the red (bearish) trend lines on the MACD 9 day MA at the top.
- Moving to the ADX at the bottom, +di (green and green line) shows upward moves getting weaker and yesterday we did not penetrate the green line as I spoke about. The red horizontal line at the -di (red) peaks shows the selling (or perhaps the lack of buying) reaches that line and reverses. Since -di and +di show the possibility of a crossover today with the penetration of the red line, this may be a critical day if that happens.
- The ADX itself at the very bottom also shows weaker and weaker market directional moves and once that dotted line gets penetrated to the upside, we could see the market gathering strength in whichever direction the it is moving when penetration occurs.
So today could be a "crossing the Rubicon" day.
From what I see on NAAD is similar but the first week of March 2012 showed a breakdown in advances. Whether that continues or not, we will just have to wait and see.
BWDIK and all the caveats apply.
PS And if you look at NYUD, it looks like the breakdown already occurred at the beginning of March. |
