In some cases in our market commentaries, we may refer to the advance/decline (also known as Breadth) Sentiment which is based on the number of the advancing and declining stocks and on the trading volume associated with each of these groups.

Advance/Decline (A/D) Sentiment is one of the most popular Breadth indicators applied to the indexes and Exchanges. The uniqueness of this technical indicators is that like TRIN Arms index it combines A/D volume and A/D stocks into a single indicator, yet, in opposite to the TRIN it oscillates i the range from -100% to +100% which allows to compare sentiments on different market indexes.

When we define market outlook we are looking at the Advance/Decline Sentiment on the NYSE Composite index and on the S&P 500 index. Advance//Decline sentiment allows us to track periods when we have extremely strong buying or extremely strong selling which may push the market into strongly overbought or oversold condition respectfully.