I recently updated my piece defining oversold and overbought conditions using MMFI or the percentage of stocks trading above their 50-day moving averages (DMAs). Here is the key text from that post: Above the 50, AT50, is overbought above 70% Above the 50, AT50, is oversold below 20% The Technicals of Converting from Above the 40 to Above the 50 Converting from...
Stock Market Commentary A meme rush pushed the stock market toward summer trading. A breakout for market breadth launched summer trading. Small cap stocks appeared to lead the way even as the S&P 500 and the NASDAQ wilted for the close of trading. The divergence still leaves the stock market poised for an eventual rendezvous with overbought trading...
Above the 40 (March 11, 2019) – Bears Put On Notice As Stock Market Finds Fresh Support March 11, 2019 by Dr. Duru AT40 = 63.0% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 41.8% of stocks are trading above their respective 200DMAs VIX = 14.3 (10.7% drop) Short-term Trading Call: bearish Stock Market Commentary The stock...
S&P 500 Performance During Overbought and Oversold Trading Conditions January 31, 2019 by Dr. Duru Introduction The percentage of stocks trading above important moving averages provides good information on the breadth of the stock market. I use the percentage of stocks trading above their respective 40-day moving averages (DMAs) because the historical data are...
Above the 40 (January 4, 2019) – The Oversold Chronicles End As A Fed-Inspired Stock Market Explodes Higher January 6, 2019 by Dr. Duru AT40 = 20.4% of stocks are trading above their respective 40-day moving averages (DMAs) (ended 13 days in oversold territory) AT200 = 14.9% of stocks are trading above their respective 200DMAs VIX = 21.4 Short-term Trading Call:...
AT40 = 10.9% of stocks are trading above their respective 40-day moving averages (DMAs) (oversold day #2) AT200 = 15.8% of stocks are trading above their respective 200DMAs (new 34-month low) VIX = 24.5 Short-term Trading Call: bullish (caveats below!) Commentary The week started as I expected based on the technical setup on Friday that I discussed in the last...
AT40 = 31.5% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 25.5% of stocks are trading above their respective 200DMAs (just off a 32-month low) VIX = 21.2 (as high as 25.9) Short-term Trading Call: cautiously bullish Commentary I have become convinced that 2019 is going to deliver another one of those poor trading starts. The...
AT40 = 23.4% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 24.7% of stocks are trading above their respective 200DMAs (new 32-month low) VIX = 22.5 Short-term Trading Call: neutral Commentary The technical damage continues in the stock market. Amid all the carnage and massive gap downs, I am surprised AT40 (T2108), the...
AT40 = 35.5% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 34.8% of stocks are trading above their respective 200DMAs VIX = 17.4 Short-term Trading Call: bullish Commentary Hold up. Pump the brakes. The bounce from oversold conditions just got more difficult as sellers forced buyers to come to a screeching halt. The S&P 500...
Above the 40 (November 7, 2018) – Exclamation Points for the End of Oversold Trading Conditions November 8, 2018 by Dr. Duru AT40 = 40.5% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 37.4% of stocks are trading above their respective 200DMAs VIX = 16.4 Short-term Trading Call: bullish Commentary Financial markets made their...
Above the 40 (November 1, 2018) – An Extended Oversold Period Ends with Important Footnotes November 1, 2018 by Dr. Duru AT40 = 21.4% of stocks are trading above their respective 40-day moving averages (DMAs) – ends an 11-day oversold period that followed a 4-day oversold period AT200 = 32.0% of stocks are trading above their respective 200DMAs VIX =...
AT40 = 17.3% of stocks are trading above their respective 40-day moving averages (DMAs) – 10th day of oversold period following 4-day oversold period AT200 = 29.5% of stocks are trading above their respective 200DMAs VIX = 23.4 Short-term Trading Call: bullish Commentary The small bullish divergence to start the week received follow-through in the form of a big...
Above the 40 (October 25, 2018) – Breadth Responds Poorly to Latest 1-Day Oversold Rally October 26, 2018 by Dr. Duru AT40 = 12.3% of stocks are trading above their respective 40-day moving averages (DMAs) – 7th day of oversold period following 4-day oversold period (as low as 10.3%) AT200 = 27.8% of stocks are trading above their respective 200DMAs VIX = 24.2...
Above the 40 (October 18, 2018) – A Second Oversold Period Gives 200DMAs A Fresh Challenge October 19, 2018 by Dr. Duru AT40 = 15.8% of stocks are trading above their respective 40-day moving averages (DMAs) – 2nd day of oversold period following 4-day oversold period AT200 = 33.9% of stocks are trading above their respective 200DMAs (up 6 percentage points) VIX...
Above the 40DMA (October 17, 2018) – A New Oversold Period for the Stock Market Despite A Bullish Intraday Bounce October 18, 2018 by Dr. Duru AT40 = 19.3% of stocks are trading above their respective 40-day moving averages (DMAs) – 1st day of oversold period following 4-day oversold period AT200 = 37.7% of stocks are trading above their respective 200DMAs (up 6...
Above the 40DMA (October 16, 2018) – Critical Stock Market 200DMAs Pass the Oversold Test October 17, 2018 by Dr. Duru AT40 = 20.9% of stocks are trading above their respective 40-day moving averages (DMAs) – ended a 4-day oversold period AT200 = 39.6% of stocks are trading above their respective 200DMAs (up 6 percentage points) VIX = 17.6 (drop of...
AT40 = 13.2% of stocks are trading above their respective 40-day moving averages (DMAs) – a 4th oversold day (below 20%) AT200 = 33.6% of stocks are trading above their respective 200DMAs VIX = 21.3 (no change) Short-term Trading Call: bullish Commentary All eyes are now trained on the stock market’s critical long-term moving averages as oversold conditions...
AT40 = 11.7% of stocks are trading above their respective 40-day moving averages (DMAs) (hit an intraday low of 9.4%, oversold day #3) AT200 = 32.3% of stocks are trading above their respective 200DMAs (intraday low of 30.0%) VIX = 21.3 (a decrease of 14.7%) Short-term Trading Call: bullish Commentary AT40 (T2108), the percentage of stocks trading above their...