Apple Leads A Picture-Perfect Bear Market Bounce – The Market Breadth

Stock Market Commentary: In the middle of last week, the S&P 500 was poised to hit bear market territory. Conditions were ripe with the stock market trading in deeply oversold territory and other indices toiling deeply in bear markets; a sharp rebound could happen at any time for any excuse. Both the S&P 500 and … Read more

Deeply Oversold and Still 98 Points from A Full Bear Market – The Market Breadth

Stock Market Commentary: The stock market finally dropped into deep oversold territory. Yet, on this third day of now extended oversold trading conditions, the S&P 500 (SPY) remains 98 points away from joining the NASDAQ and IWM in hitting a bear market (a 20% loss from its all-time high). The stock market is well on … Read more

It Took 519 Trading Days to Close Oversold – The Market Breadth

Stock Market Commentary: The last “official” oversold period was 519 trading days ago. After 8 different intraday dips into and out of oversold territory, the stock market finally closed in oversold conditions. The signs of a bear market include the inability to stay out of oversold conditions. Today’s series of breakdowns combined with further deterioration … Read more

How Much Longer Can the Market Avoid An Extended Oversold Period? – The Market Breadth

Stock Market Commentary: Despite recent bouts of trading in or like a bear market, market breadth has somehow managed to avoid closing in oversold conditions. In fact, the last “official” oversold period was 518 trading days ago. Yet, since the NASDAQ topped out in November, market breadth has dropped into and out of oversold on … Read more

The Worst Kind of Oversold Bounce – The Market Breadth

Stock Market Commentary: The expected first of the month buying only showed up in the last hour of trading, but it still made an important impression. The recovery created a picture perfect bounce off the oversold threshold. At the same time the S&P 500 perfectly tapped its May, 2021 closing low before recovering. The volatility … Read more

The Churn Zones Survive Oversold Trading Conditions – The Market Breadth

Stock Market Commentary: When Russia launched a full scale invasion of Ukraine, financial markets took heavy hits. Overnight, I anticipated a drop into oversold trading conditions for the U.S. stock market. Those oversold trading conditions were surprisingly and exceptionally brief. The major indices gapped down well below their lower Bollinger Bands (BB), and I waited … Read more

A Time for Discipline, Not Precision – The Market Breadth

Stock Market Commentary: The week’s trading started with intraday extremes to the downside and upside. With such wild swings at work, it is tempting to look backward and conclude that timing bottoms and tops are possible. This reach for precision distracts from the discipline required to navigate through the volatility. Relying on trading and investing … Read more

The Grinch Roasted Santa On An Oversold Fire – The Market Breadth

Stock Market Commentary According to Investopedia, the Santa Claus rally “describes a sustained increase in the stock market that occurs in the last week of December through the first two trading days in January.” With the legendary rally still a week away, the S&P 500 (SPY) finds itself priced exactly where it was at the end … Read more

Intensifying Pressures Usher In Oversold Trading Conditions – The Market Breadth

Stock Market Commentary Pressures continue to build in financial markets. Trading today opened like a typical relief bounce but ended with a thud. A breakdown in the S&P 500 flagged the seriousness of the selling. Fresh highs in a surging volatility index confirmed the magnitude of the pressures from a new fear and loathing for … Read more

Above the 50 Now Defines Key Measure of Stock Market Breadth

Above the 50, AT50 (MMFI) and Above the 40, AT40 (T2108) are highly correlated.

Above the 50 (AT50) Replaces Above the 40 (AT40) I had a long and rewarding journey using AT40 (T2108), the percentage of stocks trading above their respective 40-day moving averages (DMAs), as my key measure of market breadth. Over the past several years Worden and its TC2000 platform gradually reduced support for the FreeStockCharts platform … Read more