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Nasdaq's COMP weekly advance/decline (A/D) line
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This market analyst is an expert on stock bubbles. Here’s what he’s saying now.
Yahoo Finance· 2025-10-29 21:37
Core Viewpoint - The U.S. stock market is currently on solid footing, with strong technical indicators suggesting it is not yet time to sell stocks, despite the potential for a valuation bubble to develop in 2026 [1] Group 1: Market Analysis - Hayes Martin, president of Market Extremes, provides insights into the strength of the U.S. bull market, noting that all four major market averages have reached all-time highs [2] - Martin believes that a minor pullback of 5% to 8% could occur, but expects aggressive buy-the-dip behavior to follow, leading to new all-time highs [3] - Key indicators for market internals include market breadth, volume breadth, and momentum, which Martin analyzes to gauge market health [3] Group 2: Key Indicators - The Nasdaq's weekly advance/decline (A/D) line is a significant indicator, reflecting the cumulative total of weekly net advances among Nasdaq-listed stocks [4] - Historically, the Nasdaq weekly A/D line has peaked months prior to major market tops, indicating its importance in market analysis [4]