S&P 500: Percentage of Stocks Above the 20-Day Moving Average
This indicator shows the percentage of S&P 500 stocks trading above their 20-day moving average. It visually reflects short-term market strength or weakness and helps identify potential reversal points.
🔻 Sell / Open Shorts Zones:
Levels above 85–90% (marked in red) indicate an overheated market — when most stocks are trading above their short-term averages, a correction often follows.
🟢 Buy / Open Longs Zones:
Levels below 20–25% (marked in green) signal an oversold market — pressure is high, and the probability of a rebound increases.
Historically:
Each strong rally towards the 4500–4600 levels in the S&P 500 index was accompanied by overheated indicator values (85–90%).
Declines towards the 3500–3900 levels were marked by deep drops in the percentage of stocks above the 20 MA (below 20%).
Conclusion:
This indicator performs well within a sideways range and can serve as a leading signal for spotting local extremes. Currently, the reading has dropped below 15% — historically, this is a strong zone to look for long opportunities. I also showed the price of bitcoin at the moment in yellow.
Best regards EXCAVO
_____________________
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
This indicator shows the percentage of S&P 500 stocks trading above their 20-day moving average. It visually reflects short-term market strength or weakness and helps identify potential reversal points.
🔻 Sell / Open Shorts Zones:
Levels above 85–90% (marked in red) indicate an overheated market — when most stocks are trading above their short-term averages, a correction often follows.
🟢 Buy / Open Longs Zones:
Levels below 20–25% (marked in green) signal an oversold market — pressure is high, and the probability of a rebound increases.
Historically:
Each strong rally towards the 4500–4600 levels in the S&P 500 index was accompanied by overheated indicator values (85–90%).
Declines towards the 3500–3900 levels were marked by deep drops in the percentage of stocks above the 20 MA (below 20%).
Conclusion:
This indicator performs well within a sideways range and can serve as a leading signal for spotting local extremes. Currently, the reading has dropped below 15% — historically, this is a strong zone to look for long opportunities. I also showed the price of bitcoin at the moment in yellow.
Best regards EXCAVO
_____________________
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
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Register on these two exchanges
Send me confirmation and get VIP group for 3+ months
partner.bybit.com/b/excavo
whitebit.com/a/excavo
All info
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t.me/EXCAVOACADEMY
t.me/excavochannel
Send me confirmation and get VIP group for 3+ months
partner.bybit.com/b/excavo
whitebit.com/a/excavo
All info
excavo.carrd.co/
t.me/EXCAVOACADEMY
t.me/excavochannel
Related publications
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.