(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. You can follow real-time T2108 commentary on twitter using the #T2108 hashtag. T2108-related trades and other trades are posted on twitter using the #120trade hashtag)
T2108 Status: 58%
VIX Status: 21
General (Short-term) Trading Call: Hold
Commentary
Little has changed from the assessment from the last T1208 update on December 21st. Volatility is still trending downward, and T2108 is still trapped between extremes. The S&P 500 continues to creep upward as follow-through from the 3%+ surge on December 20th. The index is at a closing high for the month which matches its December intra-day high. At 1265, the S&P 500 is a few points above the converged resistance of former 2011 lows and the 200DMA.
So, the S&P 500 has a very interesting setup where low-volume, end-of-year trading could easily send the index into a breakout rally. T2108 also seems to be on target for overbought territory to start the new year. Stay tuned!
Charts below are the latest snapshots of T2108 (and the S&P 500)
Refresh browser if the charts are the same as the last T2108 update.
Daily T2108 vs the S&P 500
Black line: T2108 (measured on the right); Green line: S&P 500 (for comparative purposes)
Weekly T2108
*All charts created using freestockcharts.com unless otherwise stated
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 SDS and VXX; long VXX calls; net long U.S. dollar; net short euro, long GS shares