Question

The following table contains data on market advances and declines. Day Advances Declines Day Advances Declines

DAY	ADVANCES	DECLINES	NET ADVANCES	CUMULATIVE BREADTH
1	906	704
2	653	986
3	721	789
4	503	968
5	497	1,095
6	970	702
7	1,002	609
8	903	722
9	850	748
10	766	766

a. Calculate cumulative breadth. (Leave no cells blank - be certain to enter "0" wherever required. Negative amounts should be indicated by a minus sign.) b. Decide whether this technical signal is bullish or bearish.

Answer 1

Requirement (a)- Cumulative Breadth.

Day	Advances (a)	Declines (b)	Net Advances (c) = (a) – (b)	Cumulative Breadth
1	906	704	202	202
2	653	986	-333	-131
3	721	789	-68	-199
4	503	968	-465	-664
5	497	1,095	-598	-1,262
6	970	702	268	-994
7	1,002	609	393	-601
8	903	722	181	-420
9	850	748	102	-318
10	766	766	0	-318

Requirement (b)

The technical signal is “BEARISH”, because the cumulative breadth has a negative balance at the end of the Day 10.