Just a heads up that while this could be year end shuffling or preparation for the next FOMC meeting, but one of the indicators I watch of overall market health is the 10-day moving average of Advancers over Decliners. I look at Nasdaq but also NYSE and the line has been going straight down for almost a couple weeks now. Today it actually sits at a very negative -500 which is not something you like to see at all time highs.
Maybe we shrug it off and go higher but if there was ever a time to at least take some profits or sell some calls, this would be as good a time as any. Generally you don’t like to see concentration in just a few issues while the market makes new highs.
Good question but another way to look at it is why is the market going up when most stocks are actually declining? That’s not usually a sustainable scenario. Right now the mag 7 and other megacaps are holding their own but a lot of charts are starting to break down when you look at them individually.
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I use think or swim but any platform should have a symbol for advancers and decliners. Or you can use stockcharts.com
I like to use: https://stockcharts.com/h-sc/ui?s=$NYAD&p=D&yr=1&mn=0&dy=0&id=p81067847753
https://stockcharts.com/h-sc/ui?s=$NAAD&p=D&yr=1&mn=0&dy=0&id=p81067847753
Looking at new 52-week highs vs 52-week lows is also helpful. And not looking great right now either https://stockcharts.com/h-sc/ui?s=$NYHL&p=D&yr=2&mn=0&dy=0&id=p64356626418
https://stockcharts.com/h-sc/ui?s=$NAHL&p=D&yr=2&mn=0&dy=0&id=p04102728160