Advancers/Decliners and Volume 9/2/2010

Trading today and yesterday was actually much healthier than appears by just looking at the raw numbers on the XAO. Let's compare A/D Ratios and Up Vol/Down Vol for yesterday and today.

Yesterday:

• XAO up by +6.3 points
• Advance/Decline Ratio 1.04
• Up Vol/Down Vol Ratio 1.68

Today:

• XAO down by -18.1 points
• Advance/Decline Ratio 0.63
• Up Vol/Down Vol Ratio 1.14

On both days, there was more volume going into Advances than Decliners was positive - on Monday by a very large margin, although the Index increase was very small. Today - the volume going into Advances and Decliners favoured Advancers even though the number of Advancers were much smaller than Decliners and the Index decreased by a significant margin when compared to the previous day.

This gives further weight to my suggestion that the bulls may be on the way back (see next post).

Cheers

Red