{"id":55633,"date":"2021-01-05T00:46:30","date_gmt":"2021-01-05T08:46:30","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=55633"},"modified":"2021-01-05T00:47:29","modified_gmt":"2021-01-05T08:47:29","slug":"t2108-update-end-of-overbought-ushers-in-bear","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2021\/01\/05\/t2108-update-end-of-overbought-ushers-in-bear\/","title":{"rendered":"End of Overbought Period for Stocks Ushers In the Bear &#8211; Above the 40 (January 4, 2020)"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\"><strong>Stock Market Commentary<\/strong><\/h2>\n\n\n\n<p>The <a href=\"https:\/\/drduru.com\/onetwentytwo\/2021\/01\/03\/t2108-update-weakening-overbought-conditions-greet-new-year\/\" target=\"_blank\" rel=\"noreferrer noopener\">weakening overbought conditions<\/a> finally gave way to a full breakdown. The abrupt end of the overbought period ushers in the bear. Ironically, trading started well with the S&amp;P 500 (SPY) gapping slightly higher at the open. The selling pressure started after the open and did not relent until lunchtime on the East Coast (imagine that). Buyers were able to shove stocks higher into the close.  <\/p>\n\n\n\n<p>The headlines contained plenty of bad news to back into explanations for the selling.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><a href=\"https:\/\/www.cnbc.com\/2021\/01\/04\/politics-rattling-market-in-first.html\" target=\"_blank\" rel=\"noreferrer noopener\">Political and elections drama<\/a> in and for Georgia.<\/li><li>U.S. Secretaries of Defense across parties for the last 50 years <a href=\"https:\/\/www.cnbc.com\/2021\/01\/03\/10-former-defense-secretaries-warn-against-involving-us-military-in-election-disputes.html\" target=\"_blank\" rel=\"noreferrer noopener\">wrote together<\/a> about concerns over the potential for U.S. military involvement in civilian political battles.<\/li><li>The United Kingdom retrenched back into a full national lockdown <a href=\"https:\/\/youtu.be\/rQopV_NlYNc\" target=\"_blank\" rel=\"noreferrer noopener\">announced by Prime Minister Boris Johnson<\/a> as a new more virulent coronavirus sweeps through the country.<\/li><li><a href=\"https:\/\/www.reuters.com\/video\/watch\/iran-seizes-south-korean-tanker-reports-id723725171?chan=8gwsyvzx\" target=\"_blank\" rel=\"noreferrer noopener\">Iran seized a South Korean oil tanker<\/a> and <a href=\"https:\/\/www.reuters.com\/article\/us-iran-nuclear-enrichment\/iran-resumes-20-enrichment-at-fordow-amid-rising-tensions-with-u-s-idUSKBN299101\" target=\"_blank\" rel=\"noreferrer noopener\">resumed enrichment of uranium<\/a>.<\/li><li>Profit-taking after a banner 2020 year for stocks (profits counting for 2021 taxes instead of 2020).<\/li><li>The NY Giants missed the NFL playoffs after the coach for <a href=\"https:\/\/profootballtalk.nbcsports.com\/2021\/01\/05\/report-many-eagles-players-and-coaches-were-shocked-and-outraged-by-removal-of-jalen-hurts\/\" target=\"_blank\" rel=\"noreferrer noopener\">the Philadelphia Eagles shockingly plugged in his 3rd string QB<\/a> in the 4th quarter of a 14-17 game against the Washington Football Team.<\/li><\/ul>\n\n\n\n<p>The last point just covers the Wall Streeters in the New York area who sold stocks out of spite in disgust. Their 6-10 team was denied what would have been an historic division title.<\/p>\n\n\n\n<p>In all seriousness, pick your favorite poison &#8211; it is sufficient to recognize that the weakening overbought conditions put the market in a mood to find excuses to sell. The stock market could have and would have ignored any combination of these news items just 2 or 3 weeks ago.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>The Stock Market Indices<\/strong><\/h3>\n\n\n\n<p>The S&amp;P 500 (SPY) lost 1.5% after dropping as low as a 2.5% loss. Buyers perfectly perched the S&amp;P 500 on top of its uptrending 20DMA support.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.tradingview.com\/x\/UQhryOL0\/\"><img decoding=\"async\" src=\"https:\/\/www.tradingview.com\/x\/UQhryOL0\/\" alt=\"The S&amp;P 500 (SPY) gained 0.9% and stretched for an all-time high.\"\/><\/a><figcaption><strong><em>The <a href=\"https:\/\/www.tradingview.com\/x\/UQhryOL0\/\" target=\"_blank\" rel=\"noreferrer noopener\">S&amp;P 500 (SPY)<\/a> fell off closing and intraday all-time highs to start the year with a 1.5% loss.<\/em><\/strong><\/figcaption><\/figure><\/div>\n\n\n\n<p>The NASDAQ (COMPQX) also lost 1.5%. Buyers did not quite stick the landing on top of the uptrending 20DMA support. <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.tradingview.com\/x\/xR8DSK7z\/\"><img decoding=\"async\" src=\"https:\/\/www.tradingview.com\/x\/xR8DSK7z\/\" alt=\"The NASDAQ (COMPQX) gained 0.7% to end a week the strung together a series of all-time highs.\"\/><\/a><figcaption><strong><em>The <a href=\"https:\/\/www.tradingview.com\/x\/xR8DSK7z\/\" target=\"_blank\" rel=\"noreferrer noopener\">NASDAQ (COMPQX)<\/a> lost 1.5% after dropping as much as 2.7%.<\/em><\/strong><\/figcaption><\/figure><\/div>\n\n\n\n<br><script async=\"\" src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script>\n<ins class=\"adsbygoogle\" style=\"display:block; text-align:center;\" data-ad-layout=\"in-article\" data-ad-format=\"fluid\" data-ad-client=\"ca-pub-1196033822186410\" data-ad-slot=\"3478942445\"><\/ins>\n<script>\n     (adsbygoogle = window.adsbygoogle || []).push({});\n<\/script><br>\n\n\n\n<p>Small caps expanded a pattern of weakness. The iShares Trust Russell 2000 Index ETF (IWM) lost 1.3% after buyers just missed sticking the landing on the uptrending 20DMA support.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large is-resized\"><a href=\"https:\/\/www.tradingview.com\/x\/iAXMitR7\/\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.tradingview.com\/x\/iAXMitR7\/\" alt=\"\" width=\"580\" height=\"384\"\/><\/a><figcaption><strong><em><a href=\"https:\/\/www.tradingview.com\/x\/iAXMitR7\/\" target=\"_blank\" rel=\"noreferrer noopener\">iShares Trust Russell 2000 Index ETF<\/a> (IWM) lost 1.3% and closed at a 2 1\/2 week low.<\/em><\/strong><\/figcaption><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Stock Market Volatility<\/strong><\/h3>\n\n\n\n<p>In <a href=\"https:\/\/drduru.com\/onetwentytwo\/2021\/01\/03\/t2108-update-weakening-overbought-conditions-greet-new-year\/\" target=\"_blank\" rel=\"noreferrer noopener\">past Above 40 posts<\/a> I flagged the ominous resilience of support for the volatility index (VIX). The launchpad of support finally activated. The volatility index (VIX) surged as much as 28.1% before settling for an 18.6% gain. <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.tradingview.com\/x\/ds5CFI4r\/\"><img decoding=\"async\" src=\"https:\/\/www.tradingview.com\/x\/ds5CFI4r\/\" alt=\"The volatility index (VIX) continues to cling to the 20 threshold.\"\/><\/a><figcaption><strong><em>The <a href=\"https:\/\/www.tradingview.com\/x\/ds5CFI4r\/\" target=\"_blank\" rel=\"noreferrer noopener\">volatility index (VIX)<\/a> stubbornly bounced back to close flat.<\/em><\/strong><\/figcaption><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>The Short-Term Trading Call: Usher in the Bear<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\" id=\"block-8746fb62-8c65-4cd8-aa26-5b377e48018f\"><li><strong>AT40<\/strong> = 63.6% of stocks are trading above their respective 40-day moving averages (ended 33-day overbought period)<\/li><li><strong>AT200<\/strong> = 85.3% of stocks are trading above their respective 200-day moving averages (<a href=\"https:\/\/www.tradingview.com\/x\/RMt0Q4mh\/\" target=\"_blank\" rel=\"noreferrer noopener\">TradingView&#8217;s calculation<\/a>).<\/li><li><strong>Short-term Trading Call<\/strong>: bearish<\/li><\/ul>\n\n\n\n<p><a href=\"https:\/\/drduru.com\/onetwentytwo\/t2108-resource-page\/\">AT40 (T2108)<\/a>, the percentage of stocks trading above their respective 40DMAs, closed at 63.6%. My favorite technical indicator struggled for two days to hold the overbought threshold of 70%. The wilting trading action moved me to claim: &#8220;an end to the weakening overbought conditions appears imminent.&#8221; <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2021\/01\/210104_T2108.png\"><img loading=\"lazy\" decoding=\"async\" width=\"550\" height=\"375\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2021\/01\/210104_T2108.png\" alt=\"AT40 (T2108) dropped below 60% before rebounding to close at 63.6%.\" class=\"wp-image-55631\"\/><\/a><figcaption><strong><em>AT40 (T2108) dropped below 60% before rebounding to close at 63.6%.<\/em><\/strong><\/figcaption><\/figure><\/div>\n\n\n\n<p>However, I did not expect the end to come with such an exclamation mark. As a result, I did not have as many hedges in place as I would have liked. I held on to the few hedges I do have. In particular, I am still holding the March $5 UVXY call options. While I expected to hold these for weeks to come, I will need to take profits whenever I think the VIX is faltering. I will continue to hold shares in UVXY.<\/p>\n\n\n\n<p>Per <a href=\"https:\/\/drduru.com\/onetwentytwo\/t2108-resource-page\/\" target=\"_blank\" rel=\"noreferrer noopener\">the AT40 (T2108) trading rules<\/a>, I flipped the short-term trading call to bearish with the breakdown from overbought conditions. As the stock market ushers in the bear, I considered taking a baby step from neutral to &#8220;cautiously bearish.&#8221; However, the stock market has plenty of downside potential from here, so I prefer to be in a prepared mindset now. The bearish call gets invalidated on the next all-time high in the S&amp;P 500. The bearish call should be validated with a close below Monday&#8217;s intraday lows. <\/p>\n\n\n\n<p>Overbought conditions ended at 33 days. The S&amp;P 500 gained 3.2% from <a href=\"https:\/\/drduru.com\/onetwentytwo\/2020\/11\/14\/t2108-update-overbought-trading-resumes-fresh-momentum-reopen-trade\/\" target=\"_blank\" rel=\"noreferrer noopener\">the beginning of the overbought period<\/a> to today&#8217;s end. Per the historical chart below, this overbought period under-performed expectations. The chart projects around a 5% gain for an overbought period lasting 33 days.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2020\/12\/201223_SP500-Performance-Overbought.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"660\" height=\"446\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2020\/12\/201223_SP500-Performance-Overbought.jpg\" alt=\"Performance of the S&amp;P 500 (SPY) After An Overbought Period Ends\" class=\"wp-image-55506\"\/><\/a><figcaption><strong><em>Performance of the S&amp;P 500 (SPY) After An Overbought Period Ends<\/em><\/strong><\/figcaption><\/figure>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>The Message in the Currency Market<\/strong><\/h3>\n\n\n\n<p>Note I am not quite ready to short anything aggressively. For example, at the time of writing, the Australian dollar is rebounding sharply against the Japanese yen (AUD\/JPY). <a href=\"https:\/\/drduru.com\/onetwentytwo\/2019\/04\/13\/why-australian-dollar-japanese-yen-matter-for-stock-traders\/\">This trading action supports risk-on sentiment in the market<\/a>. <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.tradingview.com\/x\/dwbJlpg5\/\"><img decoding=\"async\" src=\"https:\/\/www.tradingview.com\/x\/dwbJlpg5\/\" alt=\"\"\/><\/a><figcaption><strong><em>The <a href=\"https:\/\/www.tradingview.com\/x\/dwbJlpg5\/\" target=\"_blank\" rel=\"noreferrer noopener\">Australian dollar vs the Japanese yen<\/a> (AUD\/JPY) quickly fought to reconfirm its uptrend.<\/em><\/strong><\/figcaption><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Stock Chart Reviews &#8211; Below the 50DMA<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Zoom Video Communications<\/strong> (ZM)<\/h3>\n\n\n\n<p>The stock of Zoom Video Communications (ZM) rebounded to 50DMA resistance in the first two weeks of the overbought period. The correction in the stock resumed from there. Today&#8217;s action notably out-performed the market with a 6.7% gain. On an intraday basis, ZM ran up to this gain in the first hour of trading. Accordingly, ZM&#8217;s out-performance was extremely strong. While ZM seems inevitably headed for 200DMA support, I put in place a hedged play of a weekly put spread to support and a calendar call spread at 20DMA resistance in the hopes of catching a big move in either direction.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.tradingview.com\/x\/bzDYrCFb\/\"><img decoding=\"async\" src=\"https:\/\/www.tradingview.com\/x\/bzDYrCFb\/\" alt=\"\"\/><\/a><figcaption><strong><em><a href=\"https:\/\/www.tradingview.com\/x\/bzDYrCFb\/\" target=\"_blank\" rel=\"noreferrer noopener\">Zoom Video Communications<\/a> (ZM) delayed a rendez-vous with 200DMA support on a strong 6.7% gain.<\/em><\/strong><\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Stock Chart Reviews &#8211; Above the 50DMA<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Boeing Co <\/strong>(BA)<\/h3>\n\n\n\n<p>Boeing Co (BA) corrected the entire month of December. I stopped buying call options after it broke 20DMA support. BA&#8217;s large 5.3% drop put it within sight of an important test of 50DMA support.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.tradingview.com\/x\/xNmDDIaz\/\"><img decoding=\"async\" src=\"https:\/\/www.tradingview.com\/x\/xNmDDIaz\/\" alt=\"\"\/><\/a><figcaption><em><strong><a href=\"https:\/\/www.tradingview.com\/x\/xNmDDIaz\/\" target=\"_blank\" rel=\"noreferrer noopener\">Boeing<\/a> (BA) confirmed a new bearish behavior with a 5.3% lunge toward 50DMA support.<\/strong><\/em><\/figcaption><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Meritage Homes<\/strong> (MTH)<\/h3>\n\n\n\n<p>Home builder Meritage Homes (MTH) is one of the most vulnerable housing-related stocks of my universe. MTH barely rebounded out of a 200DMA breakdown and closed with a 0.9% loss. The stock sits near a 6-month low and has nearly reversed its entire summer breakout.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.tradingview.com\/x\/BXi7B4pC\/\"><img decoding=\"async\" src=\"https:\/\/www.tradingview.com\/x\/BXi7B4pC\/\" alt=\"\"\/><\/a><figcaption><strong><em><a href=\"https:\/\/www.tradingview.com\/x\/BXi7B4pC\/\" target=\"_blank\" rel=\"noreferrer noopener\">Meritage Homes<\/a> (MTH) has traded poorly since October earnings. The stock sits on the edge of a freshly bearish 200DMA breakdown.<\/em><\/strong><\/figcaption><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Stitch Fix<\/strong> (SFIX)<\/h3>\n\n\n\n<p>Digital clothing outfitter Stitch Fix (SFIX) peaked days before Christmas. SFIX is down 21.8% since then. As a result of the 20DMA breakdown, the stock looks like it is aiming for an eventual test of 50DMA support. I start to get interested in buying on a test of the post-earnings closing low of $49.90.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.tradingview.com\/x\/7vqT8p9P\/\"><img decoding=\"async\" src=\"https:\/\/www.tradingview.com\/x\/7vqT8p9P\/\" alt=\"\"\/><\/a><figcaption><strong><em><a href=\"https:\/\/www.tradingview.com\/x\/7vqT8p9P\/\" target=\"_blank\" rel=\"noreferrer noopener\">Stitch Fix<\/a> (SFIX) lost 4.6% and has traded down 5 of the last 7 trading days.<\/em><\/strong><\/figcaption><\/figure><\/div>\n\n\n\n<p>Be careful out there!<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Footnotes<\/strong><\/h2>\n\n\n\n<p>&#8220;Above the 40&#8221; (AT40) uses the percentage of stocks trading above their respective 40-day moving averages (DMAs) to measure breadth in he stock market. Breadth indicates the distribution of participation in a rally or sell-off. As a result, AT40 can identify extremes in market sentiment that are likely to reverse. Above the 40 is my alternative name for &#8220;T2108&#8221; which was created by <a aria-label=\" (opens in a new tab)\" rel=\"noreferrer noopener\" href=\"https:\/\/www.worden.com\/CURRENTAFPROMO.aspx?AFCODE=866\" target=\"_blank\">Worden<\/a>. Learn more about T2108 on my <a href=\"https:\/\/drduru.com\/onetwentytwo\/about\/t2108-resource-page\/\">T2108 Resource Page<\/a>. AT200, or T2107, measures the percentage of stocks trading above their respective 200DMAs.<\/p>\n\n\n\n<p><strong>Active AT40 (T2108) periods<\/strong>: Day #57 over 20%, Day #41 above 30%, Day #40 over 40%, Day #39 over 50%, Day #38 over 60% (overperiod), Day #1 under 70% (underperiod ended 33 days overbought)<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.drduru.com\/money\/charts\/T2108-daily_s.png\"><img decoding=\"async\" src=\"https:\/\/www.drduru.com\/money\/charts\/T2108-daily_s.png\" alt=\"\"\/><\/a><\/figure><\/div>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.drduru.com\/money\/charts\/T2108-weekly_s.png\"><img decoding=\"async\" src=\"https:\/\/www.drduru.com\/money\/charts\/T2108-weekly_s.png\" alt=\"\"\/><\/a><figcaption>Black line: AT40 (T2108) (% measured on the right)<br>Red line: Overbought threshold (70%); Blue line: Oversold threshold (20%). <strong>Source: FreestockCharts<\/strong><\/figcaption><\/figure><\/div>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.tradingview.com\/x\/RMt0Q4mh\/\"><img decoding=\"async\" src=\"https:\/\/www.tradingview.com\/x\/RMt0Q4mh\/\" alt=\"\"\/><\/a><figcaption><strong><em>Percentage of stocks trading above their respective 200-day moving averages (DMAs) according to <a href=\"https:\/\/www.tradingview.com\/x\/RMt0Q4mh\/\" target=\"_blank\" rel=\"noreferrer noopener\">TradingView.com<\/a> (MMTH)<\/em><\/strong><\/figcaption><\/figure><\/div>\n\n\n\n<p>Source for charts unless otherwise noted: <a href=\"https:\/\/www.tradingview.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>TradingView.com<\/strong><\/a><\/p>\n\n\n\n<p><strong>Full disclosure<\/strong>: long UVXY shares and calls, long SPY put spread<\/p>\n\n\n\n<p><strong>FOLLOW Dr. Duru&#8217;s commentary on financial markets via <a href=\"https:\/\/stocktwits.com\/DrDuru\" target=\"_blank\" rel=\"noreferrer noopener\">StockTwits<\/a>, <a href=\"https:\/\/twitter.com\/DrDuru\" target=\"_blank\" rel=\"noreferrer noopener\">Twitter<\/a>, and even <a href=\"https:\/\/www.instagram.com\/drduru_market_breadth\/\" target=\"_blank\" rel=\"noreferrer noopener\">Instagram<\/a>!<\/strong><\/p>\n\n\n\n<p>*Charting notes: FreeStockCharts stock prices are not adjusted for dividends. TradingView.com charts for currencies use Tokyo time as the start of the forex trading day.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Stock Market Commentary The weakening overbought conditions finally gave way to a full breakdown. The abrupt end of the overbought period ushers in the bear. Ironically, trading started well with the S&amp;P 500 (SPY) gapping slightly higher at the open. The selling pressure started after the open and did not relent until lunchtime on the &#8230; <a title=\"End of Overbought Period for Stocks Ushers In the Bear &#8211; Above the 40 (January 4, 2020)\" class=\"read-more\" href=\"https:\/\/drduru.com\/onetwentytwo\/2021\/01\/05\/t2108-update-end-of-overbought-ushers-in-bear\/\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[483,20,219,35,599,1312,490,338,1311,62,1210,518],"tags":[2122,1819,772,2031,2032,1955,915,909,891,892,413,65,2090,362,2413,226,2303,303,931,2207,2336],"class_list":["post-55633","post","type-post","status-publish","format-standard","hentry","category-breakdown","category-forex","category-high-tech","category-housing","category-internet","category-manufacturing-2","category-overbought","category-retail","category-software","category-technical-analysis","category-trading-model","category-transportation","tag-at2108","tag-at40","tag-audjpy","tag-ba","tag-boeing","tag-compqx","tag-ishares-russell-2000-index-fund-etf","tag-iwm","tag-meritage-homes-corporation","tag-mth","tag-nasdaq","tag-sp-500","tag-sfix","tag-spy","tag-stitch-fix","tag-t2108","tag-trading-call-change","tag-vix","tag-volatility-index","tag-zm","tag-zoom-video-communications"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>End of Overbought Period for Stocks Ushers in the Bear<\/title>\n<meta name=\"description\" content=\"The overbought period for stocks lasted 33 days but came to an abrupt end. This conclusion ushers in the bear per the T2108 trading rules.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/drduru.com\/onetwentytwo\/2021\/01\/05\/t2108-update-end-of-overbought-ushers-in-bear\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"End of Overbought Period for Stocks Ushers in the Bear\" \/>\n<meta property=\"og:description\" content=\"The overbought period for stocks lasted 33 days but came to an abrupt end. 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