NYSE stocks A-D line improves but higher highs needed

The NYSE stocks advance-decline line has a bearish divergence from late July into late December but is improving in early 2026. A breakout to new highs is required to confirm the strong rally on the NYSE Composite. In our view, a developing bullish head and shoulders pattern supports the case for this breadth indicator to continue to strengthen and confirm the rally.

Chart 1: NYSE Composite (top) and NYSE stocks advance-decline line (bottom)

The NYSE issues advance-decline line has broken out to new highs, which is a positive sign that could provide a bullish leading indicator for new highs on the NYSE stocks advance-decline line.

Chart 2: NYSE issues advance-decline line

The NYSE stocks volume advance-decline line remains bullish with new highs that confirm the rally for the NYSE Comp into early 2026.

Chart 3: NYSE Composite (top) and NYSE stocks advance-decline volume line (bottom)