U.S. markets up from here? Percent of stocks >200ma is rising.
The vertical lines match 
SPX lows with times when only 15-20% of stocks traded over their 200ma. The light blue line is a 10-week moving average and you can see that once it turns up it keeps rising (2008-09 was an exception). According to this broad market indicator, stocks have been performing better since early July.
This is a big picture view, not to be used for short term trading. This index is a useful way to evaluate overall market condition, especially for active investing decisions.
Considering this index is closer to 20 than to 50, it is possible that even if stocks are broadly sold again, there will soon enough be a substantial rise in stock prices. The exception to all of this - if "this time is different" is true. If all the Covid-induced money printing has damaged the system so much that worse extremes will be needed to make amends, then the usual historical patterns may all go out the window.
SPX lows with times when only 15-20% of stocks traded over their 200ma. The light blue line is a 10-week moving average and you can see that once it turns up it keeps rising (2008-09 was an exception). According to this broad market indicator, stocks have been performing better since early July.This is a big picture view, not to be used for short term trading. This index is a useful way to evaluate overall market condition, especially for active investing decisions.
Considering this index is closer to 20 than to 50, it is possible that even if stocks are broadly sold again, there will soon enough be a substantial rise in stock prices. The exception to all of this - if "this time is different" is true. If all the Covid-induced money printing has damaged the system so much that worse extremes will be needed to make amends, then the usual historical patterns may all go out the window.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.