Last September there were a lot of market technicians talking about the number of stocks diverging from price and pointing out that market breadth was indicating a market top. I disagreed with that analysis and wrote a post about breadth not being as bad as it felt.  Today I’m seeing technicians pointing to the NYSE cumulative advance / decline line (NYAD) and its recent new highs and the number of stocks above their 200 dma above 80% as proof that the market should go higher. I’ll agree there are a lot of stocks advancing on a daily basis and NYAD is looking great.  The percent of stocks in the S&P 500 index above their 200 day moving average is still above 80% and is a great headline number.  Last September it was one of the things that kept me positive on the market.  Today that number doesn’t impress me so much.  Why?  Take a look at the damage done to this indicator in August and September of 2013.  Those market

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