Tricky Trading Quickly Took Stocks from Strength to Weakness – Above the 40 (February 26, 2021)

Stock Market Commentary The stock market got quite tricky last week. A day after buyers re-established control, sellers returned with a sustained fury. The selling on Thursday reflected the stock market’s split personality while the follow-up selling on Friday seemed broader. The pressure on the the stock market looks like an ominous setup for March … Read more

The Stock Market Stretches Into An Extended Overbought Rally – Above the 40 (December 4, 2020)

Stock Market Statistics AT40 = 79.6% of stocks are trading above their respective 40-day moving averages (DMAs) (Day #10 overbought) AT200 = 77.7% of stocks are trading above their respective 200DMAs (7 1/2 year high) VIX = 20.8 Short-term Trading Call: neutral Stock Market Commentary A week ago, the overbought stock market stretched for a … Read more

A Pause in the Frenzy Ends Stock Market Bid for A Parabolic Run-Up – Above the 40 (September 4, 2020)

Stock Market Statistics AT40 = 54.6% of stocks are trading above their respective 40-day moving averages (DMAs) (intraday low of 45.9% which was solid support in second half of July and early August)AT200 = 46.9% of stocks are trading above their respective 200DMAs VIX = 30.8Short-term Trading Call: cautiously bearish Stock Market Commentary I thought … Read more

An Overbought Stock Market Celebrates New Fed Inflation Policy – Above the 40 (August 28, 2020)

AT40 (T2108) is back to overbought (above 70%).

Stock Market Statistics AT40 = 71.2% of stocks are trading above their respective 40-day moving averages (DMAs) (ended 7 overbought trading days)AT200 = 46.5% of stocks are trading above their respective 200DMAs VIX = 23.0Short-term Trading Call: cautiously bearish Stock Market Commentary Last week was not a good time to be sitting on the sidelines … Read more

Stock Market Transitions to Key Breakouts and Setups At Support – Above the 40 (July 17, 2020)

Stock Market Statistics AT40 = 56.1% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 32.5% of stocks are trading above their respective 200DMAs VIX = 25.7Short-term Trading Call: neutral Stock Market Commentary Last week started with a growl and ended quietly. The stock market quickly transitioned from confirming a bearish … Read more

Resilient Stock Market Blows Past the Whisper of A Bearish Divergence – Above the 40 (January 10, 2020)

AT40 = 58.7% of stocks are trading above their respective 40-day moving averages (DMAs)AT200 = 59.0% of stocks are trading above their respective 200DMAsVIX = 12.6Short-term Trading Call: neutral Stock Market Commentary The bearish signals are growing, but they are still not impeding this resilient stock market. The ever so shallow selling acts like a … Read more

FANG Without A Bite: A Market With A Bullish Divergence and Still Not Oversold – Above the 40 (June 3, 2019)

AT40 = 24.1% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 37.9% of stocks are trading above their respective 200DMAsVIX = 18.9Short-term Trading Call: neutral Stock Market Commentary “The stock market might turn at lower levels.” Jim Cramer, CNBC’s Mad Money, June 3, 2019 This truism is a bit silly, … Read more

Above the 40 (March 6, 2019) – Nick Widens: End of Overbought Period Exposes Precarious Stock Market

AT40 = 63.3% of stocks are trading above their respective 40-day moving averages (DMAs) (25th overbought day)AT200 = 41.0% of stocks are trading above their respective 200DMAsVIX = 15.7Short-term Trading Call: cautiously bearish Stock Market Commentary The broken record in the stock market finally came to an end. The small nick in the overbought period … Read more

Above the 40 (November 30, 2018) – Market Sentiment Quickly Transforms: Enter the “Cramer Bottom”

AT40 = 44.5% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 30.3% of stocks are trading above their respective 200DMAs (just above a 32-month low) VIX = 18.1 Short-term Trading Call: neutral Commentary Last week was a week where the stock market seemed to force its way into the endzone … Read more

T2108 Update (October 19, 2016) – The S&P 500 Bounces Weakly from Near-Oversold

(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. It helps to identify extremes in market sentiment that are likely to reverse. 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 … Read more