[isatrader]

Does anyone know what type of scenario could be causing this divergence between the Nasdaq AD in stocks making new swing lows downwards whilst the volume AD is continually rising?

Is it that there are less equities on the Nasdaq participating in the bull market while most of the volume is being down on the bluechips of the Nasdaq which are rising?

I think you nailed it. Large caps have much more volume than the small caps and hence as the large caps have been rising over the last year, that's clearly held up the AD volume while the equal weighted standard AD chart has moved lower.

Although that's just speculation on my part, as I'm not certain how they compile the AD volume data. But seems the logical assumption to me.

The main think that I noticed this week was how neutral everything is in the market breadth in terms of the Weight of Evidence on all time frames. Not sure what to make of it... so am staying relatively cautious until there's some more clarity.