Below is a look at the 30 Dow stocks run through our popular trading range screen. The screen allows you to quickly analyze where each stock in a basket of stocks currently stands within its historical trading range. Each dot represents where the stock is currently trading, while the tail highlights where the stock was trading one week ago. (A detailed description of how to read the screen is provided at the bottom.)
As shown, the majority of Dow stocks remain in overbought territory, but as evidenced by the red dots, most have moved lower within their trading ranges over the last week. Caterpillar (CAT) is currently the most oversold stock in the Dow, while United Health (UNH) is the most overbought.
Monday we noted that while the market remains at the top end of its trading range, some troubling trends have emerged recently. One is that breadth has not been strong during the most recent move higher, and the other is that the defensives have been leading while cyclicals have lagged. With most stocks still in overbought territory, the bears could have a field day here.