[isatrader]

Interesting. Market breadth is my Achillies heel. Despite these forums getting more cautious, myself failing to have any significant sucesses, except French Connection, this year and a lot of thing stopping then it felt like things were changing. My own screener database showed similar. However, I could not see it in the advance-decline lines. So, actually the advance/decline lines are showing some strength, I am reading them correctly. Perhaps the posters here and the indicators you are commenting on are a bit in advance of the advance/decline line?

Incidentally I have some links to A/D lines:
http://www.livecharts.co.uk/breadth_char...ecline.php
http://www.livecharts.co.uk/breadth_char...ecline.php
http://www.masterdata.com/Reports/Combin...36;SPX.htm

Interesting to see how this pans out.

The AD charts you linked to are for the large caps only FTSE 100 and Nasdaq 100, which as I've said continue to see a rotation into them from the mid and small cap stocks which have seen the bulk of the initial sell off. The breadth charts I show on here look at a larger sample size of stocks which is why I give them more weight. For example the Sector breadth charts are made up of over 4500 US stocks. And the Nasdaq Composite AD charts and NYSE AD charts both have all of those stocks from the sectors charts in them. So the difference is the sample size, as those charts you referenced only cover less than 5% of what the Nasdaq Composite and NYSE AD charts AD charts do.

Attached below is the NYSE Advance Decline Chart and the Nasdaq Composite Advance Decline Chart. So combined the bulk of the US market.

The NYSE Advance Decline Chart continues to make new highs, while the Nasdaq Composite Advance Decline Chart has formed a Stage 3 top and is attempting to breakdown into Stage 4. So a clear division between the two main US markets.

       

If you wan to drill down further then you can look at the S&P 1500 (which includes 500 large caps, 400 mid caps and 600 small caps), the S&P 500 large caps, and the Nasdaq 100 large caps.

           

So as you can see the advance decline lines have for the most part continued make new highs in the US as well. The only divergence is in the Nasdaq Composite stocks where we've seen the majority of the selling.

Remember the advance decline charts are only one area of the market breadth. Weinstein recommends a Weight of Evidence approach, which looks across a large range of breadth measures, and so don't focus on advance decline alone, although it is very useful.

The other thing is, if you are only trading UK stocks then you need to look at creating UK breadth charts, as these will be different to the US.