Sellers Followed Through On Resolution of Bearish Divergence – Above the 40 (January 29, 2021)

Stock Market Commentary After the recent bearish divergence resolved to the downside, the stock market rebounded sharply. Volatility was over-extended and my favorite breadth indicator plunged at an extreme rate. In that context, the stock market’s subsequent bounce made sense as relief from extreme conditions. The sellers followed through on the resolution of bearish divergence … Read more

Weakening Overbought Conditions Greet the New Year – Above the 40 (December 31, 2020)

Stock Market Commentary The extended overbought period still looks tenuous. For the second trading day in a row, AT40 (T2108), the percentage of stocks trading above their respective 40-day moving averages (DMAs), broke down below the overbought threshold of 70% before closing at 73.0%. The major indices do not reveal these weakening overbought conditions. The … Read more

An Extended Overbought Rally Moves Into Historic Territory (Above the 40) – December 18, 2020

Stock Market Commentary The Federal Reserve signaled an incremental improvement in its economic outlook by making an allowance for limited stock repurchases and dividends by the country’s top financial institutions. As a result, bank stocks apparently soared in after hours trading. That fresh rally in financials should extend to a positive open on Monday and … Read more

Tech Fertilizes the Weeds in the Stock Market – Above the 40 (September 11, 2020)

Stock Market Statistics AT40 = 40.2% of stocks are trading above their respective 40-day moving averages (DMAs) (2-month low)AT200 = 43.0% of stocks are trading above their respective 200DMAs (2 1/2 week low)VIX = 31.5Short-term Trading Call: cautiously bearish Stock Market Commentary The weeds in the stock market thickened last week. Tech stocks fertilized the … Read more

T2108 Update (September 9, 2016) – FedSpeak Crashes the Stock Market’s Complacency Party – For Now

(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