NYSE Breadth unconfirming the rally again on Monday

By Scott Pluschau www.scottpluchau.blogspot.com Posted: 04 Jun 2013 06:38 AM PDT The NYSE Advance Decline Line was lagging the price action and closed negative with after a big rally in the NYSE Composite Index on Monday afternoon. You can see on the chart below, the right hand side is the AD line in the NYSE and its high of the day was at the open, and the close on the day was negative. Left hand side on the chart below is the NYSE Index and it was making new highs late in the day, and I believe it is the Algo type buy programs from speculators playing "squeeze the shorts", but the shorts that are building a position lately have been Commercial Traders with strong hands... I have been seeing this type of non-confirmation or bearish negative divergence in the market breadth/market internals for some time now.  It is likely the US Equity market has another push on low volume toward new highs, but the next increasing volume selloff is going to be "check mate" for the "speculators" with the large leveraged position to unwind. (Click on chart to expand) Join me on Twitter/Stocktwits/Linked In @ ScottPluschau Comments are welcome ScottPluschau@gmail.com Source: NYSE Breadth unconfirming the rally again on Monday