The surprising good news about gains in manufacturing sent the stock market soaring today. All three major indexes posted good gains.
But how do you know this wasn't a fluke? Was this a solid gain or the expansion of a bubble?
One way to tell is to look at the advance/decline indicator. This tool tells you whether most of the market was moving in the same direction or whether just a few key stocks pushed indexes up.
The advance/decline indicator tells you the strength behind the move. The indicator compares the number of stocks up for the day against the number of stocks that were down.
Wednesday's rally saw winners out pace losers six to one. Does this mean the stock market will gain tomorrow? No, but it does tell you something important. Read what...
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