(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: 56%.
VIX Status: 19.2.
General (Short-term) Trading Call: Hold.
Commentary
T2108 soared today from 42% to 54% and completely erased yesterday’s losses. The S&P 500 jumped 1.6%. The previous bearish tone of the market was instantly neutralized for now as the index broke back above its 50DMA and closed for a six-day high. The 200DMA is no longer play as long as the S&P 500 remains above its 50DMA.
Earnings for technology companies are generally coming in OK to excellent, making it harder and harder to stay bearish. While I try not to overplay the news headlines while tracking T2108, I must acknowledge that all the bearish foreboding that the market inherited from June seems to be losing its grip on sentiment slowly but surely. Bears are losing their control over momentum. Thus, my confidence is starting to wane on my near-term T2108 target of the low 30s.
Note well that the bulls still have a lot to prove: a new high for July and then new 52-week (and multi-year) highs will completely swing momentum away from the bears.
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); 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 puts on SSO, long SDS