Question

The following table contains data on market advances and declines.

Day	Advances	Declines	Day	Advances	Declines
1	966	724	6	974	742
2	693	1,006	7	1,042	729
3	721	849	8	911	722
4	563	1,088	9	910	778
5	489	1,095	10	770	766

a. Calculate cumulative breadth. (Negative amounts should be indicated by a minus sign.)

Day	Advances			Declines			Net Advances	Cumulative Breadth
1		966			724
2		693			1,006
3		721			849
4		563			1,088
5		489			1,095
6		974			742
7		1,042			729
8		911			722
9		910			778
10		770			766

b.

Whether this technical signal is bullish or bearish.

	Bearish
	Bullish

Answer 1

Breadth on any day = Advances - Decline

Cumulative breadth on a day = Sum of breadth on individual day till that day. It's a cumulative (sum total) of breadth upto that day.

Part (a)

The last column is your answer.

Day	Advances	Declines	Net	Cumulative Breadth
			Advances
	A	D	N = A - D	Cumulative of N
1	966	724	242	242
2	693	1,006	-313	-71
3	721	849	-128	-199
4	563	1,088	-525	-724
5	489	1,095	-606	-1330
6	974	742	232	-1098
7	1,042	729	313	-785
8	911	722	189	-596
9	910	778	132	-464
10	770	766	4	-460

Part (b)

Since value in the last day is negative, the technical signal is bearish

answered by: anonymous