It's been a few weeks since the longer term weekly breadth has been reviewed, so will take this opportunity to pollute Fib's thread with some weekly NYSE breadth charts, first the common stock only weekly AD data.
The weekly common cumulative AD line took a slight rest last week after achieving all-time highs several weeks ago. Note how the May 2006 weekly common AD high provided nice support during the early November sell-off.
The weekly common AD McClellan Oscillator (MCO) has backed off to +43 after stalling out at +58 for the prior two weeks. Thus far, the pattern of higher lows and higher highs from the summer 2006 lows remains intact for this longer term liquidity-inflow acceleration tool.
The weekly common stock only AD McClellan Summation Index (McSum) continues to overcome resistance levels. At +603, the next objective is the +686 high achieved in the spring of 2006. A clean break of the slowly rising ledge pattern carved out from November 2005 until late April 2006 would be a significant bullish liquidity inflow event for the longer term.
The long term weekly NYSE composite (all-issues) cumulative AD line continues to post new all-time highs... thanks to the preferred stocks and bond CEFs, the weekly composite AD line had a net gain last week.
A comment about the differences between the daily and weekly NYSE composite cumulative AD lines. As most students of breadth are aware, the NY daily ratio-adjusted AD line (RA-AD) has yet to break its 1959 all-time high (although as of 12-1-06, less than 7,000 net advances are needed to make a new high), the weekly cumulative RA-AD line continues breaking record after record.
Note how the weekly RA-AD line diverges with price long before a serious price correction unfolds. Due to that characteristic, the probability is very low any major price decline is in the cards over the coming months.
The NY composite weekly AD McSum continues higher after recently breaking its nearly 2.5 year pattern of lower highs and lower lows. At +1242, it had taken out two resistance levels, with the next hurdle being the +1487 high posted in February, 2005.
An important point to keep in mind for the longer term, is as long as the weekly composite AD McSum continues rising while it is comfortably above the +1000 level, the probability of a significant price decline is extremely low. Thus for now, all is clear for the longer term health of the market... the direction of longer term money flows into the composite group of NYSE stocks is simply too strong to support the notion of a price collapse at this time.