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The bull case for stocks in three charts

June 21, 2018

Via: CNBC
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An underlying trend may be insulating the market from a sustainable decline.

Based on charts of the S&P 500, Nasdaq and Russell 2000, the Bespoke Investment Group’s Paul Hickey used a technical indicator called the advance/decline line to show market breadth is positive — a sign that supports expectations of higher stock prices.

“What you see is that while the S&P 500 remains well off its highs from January, the cumulative A/D line has been making new high after new high. Back since the January peak in the S&P 500, there’s been 14 new highs in the S&P A/D line,” the firm’s co-founder said Wednesday on CNBC’s “Trading Nation.” “That tells us that there’s an underlying trend in the market where investors are acquiring stocks.”

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