The Composite Tape Index (CTI) merges the Advancing Issues/Declining Issues Ratio, the New High/Low Ratio, the Upside/Downside Ratio and a rate of change of the NYSE composite index. The CTI is a trend-following indicator. Values above 0 are generally interpreted as bullish. The CTI is above 0 and its 50-day moving average. This indicator is therefore suggesting a short-term bullish trend is in effect.
A Breadth Thrust is a surge in the average of the ratio of advancing issues to declining issues. To be considered a breadth thrust, the indicator must rise from below .40 to above .615 within 10 days. While this event is extremely rare, it is also extremely bullish. When it occurs, it is almost always followed by a general rise in the market. No Breadth Thrust has occurred
The Advance/Decline Line (A/D Line) is a measure of market strength and direction. A rising A/D Line (more securities are increasing than decreasing) usually occurs with a rising market. If more securities are decreasing, driving the A/D Line lower, the market is probably falling. Advancing issues outnumber the declining issues. This is causing the Advance/Decline line to rise. A rising Advance/Decline line indicates a rising market.
The Cumulative New High/New Lows is intended to reflect the market's direction based on the number of securities making new highs versus those making new lows. Usually, if more securities are making new highs, the market is moving up. If more securities are making new lows, the market is moving down. However, when this indicator reaches extremes, it suggests that the market is near to exhausting its motion in that direction and will reverse soon. Since extremes are difficult to identify until they happen, when this indicator is making new highs or new lows, it is a strong signal of market direction, but should also be viewed with the caution that a reversal may occur soon. The rising New Highs/New Lows Cumulative is making new highs. Be on the watch for a possible peak and market reversal.
The Cumulative Volume Index is a running total of the differences between Advancing Volume and Declining Volume. It supposed to indicate whether volume is moving in or out of the market. The Cumulative Volume Index is trending up, suggesting that money is moving into the market.
An indicator, based on its design "intent" may indicate one thing or another. However, we are not providing here our personal interpretations or analyses. We are simply reporting current readings. Some indicators may at times be in conflict with others. This page does not appear on a set schedule at this time. When it does appear, it may have different information than what is displayed here. If this page of additional notes is available, it will be indicated by a link after the "Comments" section of the Market Review page.
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