NYAD which has lead this rally has finally showed signs of negative breadth. During the past run-ups in the market, NYAD has been able to stay above its 8ema, 19ema and 39ema. It was mention a few times here, to watch and see if NYAD would bounce off it's 8ema, or 19ema.
Looking at the chart above, since the March rally the cumulative NYAD line has been able to ride up using these moving averages as support. The past declines in the market have been shallow and the 8 day ema has provided support, the last two big declines the market reversed it's decline when the 19 or the 39 ema's have provided support. Right now the NYAD is below its 19 ema, this may provide a bounce at this level(looking at futures right now this may be be occur).
So watch the A/D line today, if it is weak again it could provide a clue for more downside since the 19ema will not provide support. The 39 ema would be the next natural support and is far away from the current level. If the the market does move up today and NYAD does, the next thing to watch will be if the 8ema can cap any move up.
