Another illustration of the fact that updating (albeit insignificant) historical highs in the US stock market so far looks more likely than immediate stalling in the correction. This is a comparison of the S & P-500 with an indicator that, cumulatively, shows the difference between rising and falling stocks on the NYSE. Our practice shows that as long as the AD-Line is growing, it is very unlikely that the market will seriously fall (kickbacks do not count).
A reason for concern may be a divergence similar to the period August-October 2018 (marked by arrows) — when the stock index shows a new high, but AD-Line does not confirm it. And this is not some kind of alchemy, but a banal logic: if most of the shares in the index begin to decline, it is unlikely that its growth can be sustainable. Now the reverse situation is that the AD-Line, after a short pause, showed a new historical maximum, while the S & P-500 is not there yet. Although this does not guarantee 100%, the probability of the index reaching new highs, in our opinion, increases