For example, in late 1989, the support (line a) was violated well before the start of the recession in the summer of 1990. In 2001, the break of support (line b) occurred near the start of the recession, which was also the case in 2007 (line c). My A/D line methodology identified the market top in 2007, and has kept investors on the right side of the market ever since. The break of the S&P 500 A/D line support (line a) and the drop below the early March lows has moved the daily A/D line into the corrective mode. The recent new high is a positive and the Nasdaq 100 A/D line does not show as much downside momentum as the S&P 500 A/D line.

Source: Forbes March 24, 2018 18:11 UTC