Sunday, July 12, 2009

Market Short Term Oversold

From a pure technical perspective, the market does appear to be oversold on a short term basis. The percentage of S&P 500 Index stocks trading above their 50 day moving average has fallen to 26.6%. This is down from nearly 90% in early May. In looking at a longer term moving average, 57.2% remain above the 200 day moving average--down from over 70% in mid June.




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