Nobody Expects the Spanish Inquisition

Something very interesting happened last week. The $NYAD -- the New York Advance-Decline Line -- turned lower and broke its uptrend.

So far, the broad New York Stock Exchange index hasn't followed suit. So far ...

The Advance-Decline Line (AD Line) is a breadth indicator based on the number of advancing stocks less the number of declining stocks. In this case, all stocks listed on the New York Stock Exchange, including foreign ADRs.

What this means is that less stocks are participating in rallies on the NYSE. The market is holding up, but that's thanks to outsized gains among fewer leaders.

The action in the $NYAD is often seen as a good predictor of what happens in the broad $NYA, or stocks listed on the New York Stock Exchange.  It reveals things hidden by the actions of the big leaders.

Here's another tell. Insider buying is drying up fast. In other words, company insiders aren't interested in buying their own stocks. As the Wall Street Journal reports ...

"There were a total of 279 insider buyers in January, the lowest number going back to 1988."

What's this mean? Well, considering all the cheerleading going on for the broad stock market right now, you might want to prepare to expect the unexpected. Certain industries could still rally, sure. But for the broad market, a tradeable correction may be on the horizon.