Market Breadth Indicator – Advance Decline Numbers Outlook For Mon Nov 5 2018

Friday saw the first round of selling following a strong 3 day rally. The selling was exaggerated somewhat by confusing messages out of the Whitehouse on the state of the ongoing trade negotiations with China. Added to the problems the markets faced on Friday was news of the trade deficit with China rising to record levels as imports continued to rise. Pressure on the markets was also being brought by Apple’s earnings which were good but failed to excite. Adding to the uncertainty was Apple’s announcement of changes to reporting of unit sales.

Before markets opened on Friday, October jobless numbers showed that wages rose 3.1% over the past 12 months, the biggest wage gain in nine years. As well 250,000 more jobs were added to the economy, far more than anticipated. These were terrific numbers but they also seemed to confirm the Fed minutes where the concern was with the potential for rising wages which would lead to rising inflation. Therefore on Friday hardly any analysts felt the Fed would not raise rates again in December.

All of this combined with a strong overbought market, sent stocks lower on Friday.

Advance Decline Numbers Outlook for Mon Nov 5 2018

Here are the market breadth indicator signals along with advance decline numbers from the S&P 500 Index and NASDAQ Index from the close of trading on Fri Nov 2 2018.

There are some interesting signals from the Market Breadth Indicators from Friday’s session.

As well there were trades in the market protection section on Friday and there is the potential for more trades on Monday.

Members should review all market breadth signals and possible trades, before stock markets resume trading on Monday.

The market breadth indicator analysis and outlook is for FullyInformed Members.