In my April 6th article I wrote how the S&P 500 was grossly overextended and basically pressed against the ceiling on the Percent of S&P stocks above their 50 day moving average. Tonight we are taking a look at the Nasdaq to see if it is equally overbought. The chart below shows the percent of Nasdaq stocks above their 50 day moving average. Friday the percent above 50 closed at the most overbought level in the past two years.
With such overbought conditions, investors would do well to keep a close eye on their long positions.
Trade well my friends