Big drawdown after new high in Advance/Decline Line

In years past, we’ve looked at the line in a lot of different ways, including the idea that when it hits new highs, drawdowns in the S&P 500 over the ensuing months tend to be limited. Protracted bear markets do not often begin soon after breadth hits new highs. Our current environment is putting that idea to the test with the S&P falling into a correction soon after a new high in the A/D Line

See this report for more detail.