A divergence between an increase in a stock market series and the rest of the stock market can be detected using
A) debit balances in brokerage accounts.
B) short interest.
C) the advance-decline line.
D) confidence index.
E) investor sentiment.

Question

Quizplus · Accepted Answer

The advance-decline line is a technical indicator that measures the relative strength of the overall market by comparing the number of advancing stocks to declining ones. If the stock market series is increasing but the advance-decline line is not keeping pace, there may be a divergence indicating that the increase in the stock market series is not supported by broad market participation. Therefore, the correct answer is C) the advance-decline line.

A Divergence Between an Increase in a Stock Market Series