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Instead of writing something to the extent that breadth is still bad, which everyone already knows, we are going to introduce a concept that lends itself to further testing and analysis. Bullish breadth divergences would be a sign that markets are nearing a bottom. Today we are going to define a divergence as when the Advance/Decline Line is above the 20% mark of its annual range while the respective index is still below the 20% level. In all cases, there has not been a divergence yet. However, this framework will serve as an objective determination of a divergence when it does take place.

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New York Stock Exchange

The A/D Line for the NYSE is near the bottom of its yearly range, as is the NYSE Composite Index. There is no divergence here.

S&P 500

Both the A/D Line and the index are under the 20% threshold, but the A/D Line has been perking up of late. Watching, but not yet a divergence.

S&P 400

Both the A/D Line and the index are below 20% for the annual range. No divergence in sight.

S&P 600

There is not a divergence here either.

NASDAQ 100

The NASDAQ 100 is close to giving us a divergence but is not quite there.

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Disclosure: This information is prepared for general information only and should not be considered as individual investment advice nor as a solicitation to buy or offer to sell any securities. This material does not constitute any representation as to the suitability or appropriateness of any investment advisory program or security. Please visit our FULL DISCLOSURE page.