(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. To learn more about it, see my T2108 Resource Page.)
T2108 Status: 51% and Neutral
General Trading Call: Hold.
Commentary
T2108 dropped back to 51%, suggesting that a trip to the 30-40% range remains in sight over the next week or two. The S&P 500 stayed within its now 3-week long downtrend by selling off today. I have pointed to this downtrend as a reason I have not recommended sniffing for longs although T2108 was at and below April’s low. Interestingly, the bounce from support even lasted the mere two days that I expected. (Chart not shown. Click here for chart of the S&P 500 at stockcharts.com)
The general trading call remains neutral to reflect a balance of upside/downside risks. In particular, a break of the current downtrend could easily lead to a fresh rally.
Charts below are the latest snapshots of T2108 (and the S&P 500)
Daily T2108 vs the S&P 500
Black line: T2108 (measured on the right); Red line: S&P 500 (for comparative purposes)
Weekly T2108
*All charts created using TeleChart:
Related links:
The T2108 Resource Page
Expanded daily chart of T2108 versus the S&P 500
Expanded weekly chart of T2108
Be careful out there!
Full disclosure: long SSO puts