Stock Market Technical Analysis
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Very little changed in the charts today, basically a sideways day overall. I am going to take this opportunity to discuss market breadth for a moment. Market breadth is commonly measured by the % of stocks above their 50 day moving average. Major legs up in the S&P 500 index often take it to the point that 90% of its stocks are above their 50 day moving averages. This 90% level is where most major rallys end and major down legs begin in the market. When we get above 90% we are considered to be entering bubble territory.
Yesterday's big short squeeze in the market took the S&P to the 91% level. If they take us higher, even the bulls may begin to voice concerns. This might be a good place to tighten your stop loss settings on open trades.
Alan
Yesterday's big short squeeze in the market took the S&P to the 91% level. If they take us higher, even the bulls may begin to voice concerns. This might be a good place to tighten your stop loss settings on open trades.
Alan
