Stocks are at a critical junture

The market has been losing momentum since early May.

This is particularly evident when you look at the advance-decline line (see above chart).

What is interesting is that the a-d line is declining sharply, more sharply than the overall market. It is now close to the moving average (blue line). A break below this line may very well signal serious trouble for the market.

Stay tuned.

George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
Author, Profiting in Bull and Bear Markets

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