Percentage of Stocks Above 50-Day Moving Averages (12/10/08)

Even though the S&P 500 is in a new bull market, the percentage of stocks in the index trading above their 50-day moving averages is still at oversold levels. As shown in the chart below, at 26%, this indicator has a long way to go before becoming overbought.

On a sector basis, Telecom, Utilities, and Consumer Discretionary have the highest percentage of stocks above their 50-days, while Energy and Financials have the lowest.

Comments

[update:]

Since when is the S+P in a new bull market?

It dropped some 50% this year.

Ever heard of a dead cat bounce?

Or is that too sophisticated for you brainless bottom callers.

2008 Dec 10 12:29 PM

[sr9web:]

Excellent article - thanks!

2008 Dec 10 10:06 PM

[pitaking:]

I think that the level of the bounce(20%+) is what qualifies it as a statistical bull market, dead cat bounce or not.

2008 Dec 10 11:42 PM