Nasdaq Lags NY Composite, but Nasdaq Breadth is Strong

The indicator summary got another upgrade this week as SPY momentum improved. All indicators are in bull mode and the majority have been bullish since early December, which is one long run for bullish technicals. The NYSE AD Line is the lone laggard because it has yet to clear its May-July high. The NY Composite ($NYA) recorded a new high this month so a bearish divergence may be brewing, but I would not read too much into this because it is just one indicator and it is pretty close to a new high.

• AD Lines: Bullish. The Nasdaq AD Line surged to a new high this week. The NYSE AD Line surged to its May-July highs this month, but has yet to exceed these highs.
• AD Volume Lines: Bullish. The Nasdaq AD Volume Line and the NYSE AD Volume Line moved to new highs this week.
• Net New Highs: Bullish. Net New Highs expanded this week and the cumulative Net New Highs lines for the Nasdaq and NYSE moved to new highs.
• Bullish Percent Indices: Bullish. All nine sector Bullish Percent Indices are above 50%.
• VIX/VXN: Bullish. The S&P 500 Volatility Index ($VIX) and the Nasdaq 100 Volatility Index ($VXN) fell back below 15% and remain a low levels overall.
• Trend-Structure: Bullish. DIA, IWM, QQQ, QQEW and SPY recorded new highs this week. MDY is challenging its August high.
• SPY Momentum: Bullish. RSI moved back above 60 and MACD(5,35,5) turned positive last week. The Aroon Oscillator joined the party with a move above +50 this week.
• Offensive Sector Performance: Bullish. XLI, XLK and XLY recorded new highs this week. XLF is lagging a bit because it has yet to exceed its August high.
• Nasdaq Performance: Bullish. The $COMPQ:$NYA ratio remains in an uptrend overall, but declined in September as the Nasdaq underperformed the last three weeks.
• Small-cap Performance: Bullish. The $RUT:$OEX ratio hit a new high last week and remains in an uptrend.
• Breadth charts (here) and intermarket charts (here) have been updated.  This table is designed to offer an objective look at current market conditions. It does not aim to pick tops or bottoms. Instead, it seeks to identify noticeable shifts in buying and selling pressure.
  
  This commentary and charts-of-interest are designed to stimulate thinking. This analysis is
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