Chart of the Day - Wednesday, April 15th, 2020

Today's Chart of the Day was shared on Twitter by Neil Blalock (@NeilBlalock). It's a chart of the NYSE Advance-Decline Volume Index over the past two years, along with the S&P 500 index in the bottom pane. The NYSE Advance-Decline Volume Index is a breadth indicator that is calculated by subtracting the volume of declining stocks from the volume of advancing stocks on the NYSE. The sharp rebound rally over the past couple weeks has some market participants hoping for a V-Shaped recovery similar to what we saw after the Q4 2018 decline. However, Neil points out that this breadth indicator has begun to roll over, which tells us that market internals are not as strong as they were following the Q4 2018 decline. This is not supportive of the V-shaped recovery that some are anticipating.