🛑 This is a WARNING Signal for the Stock Market

Understand this before trading today.

What Will the Market Do?

We’re currently at an interesting place with the market.

While we’re seeing some key stocks like NVDA and SMCI blast to all-time highs, we’re also seeing a lot of key stocks like TSLA and MSFT show signs of rejection.

So should we be leaning bullish or bearish?

Understand this Signal

What you’re looking at below is the performance of the Nasdaq vs. the Advance/Decline line.

The Advance/Decline line charts the number of stocks that are advancing vs. declining.

What you can see is a huge divergence. That tells us that while the Nasdaq is rising, breadth of the market is dropping.

You can see in 2021/2022 what happened after we saw a similar divergence.

What To Do About It

This doesn’t 100% mean that the stock market is going to sell off but it will be an important metric to keep an eye on.

Think of this as one more data point to help inform your decision-making.

I covered the significance of this divergence in my video below: