NASDAQ Comp. New Highs

NASDAQ Advance/Decline

The NASDAQ recently made a new 14 year high and is approaching its all-time high of 5132.50. The next valuable input investors should look for is broad-sector participation with the new market highs.

One way to gauge broad-sector participation is to look at the NASDAQ’s Advance-Decline line. This shows how many stocks are advancing into new high ground as the market advances into new highs. If the Advance-Decline line is making new highs that means the market’s action is being supported by a wide-range of different industry groups, resulting in a risk-on environment (see chart).

An additional input investors should gauge is their current portfolios. If current stock selections are acting right, then adding to positions would be a viable option. However, if current stock selection is underperforming, investors should stay prudent and hold off for imperative feedback from the overall market.

As always, if you have any questions please contact our MarketSmith Team at (800)-424-9033 or email us at

Happy hunting,
The MarketSmith Team