This measure of overbought is consistent with the bearishness of several contributors to Phil’s Favorites who expect lower prices.
Percent of Stocks Above 50 Day Moving Average: Overbought
Courtesy of Ben, the Financial Ninja
The market is severely overbought for a Bear Market rally when 83.4% of all stocks on the NYSE are above their 50 day simple moving averages.
Considering that equities are overbought as I’ve mentioned in McClellan Oscillator, Super Overbought, Bullish Percent Index, Flashing Warning Signs, and Good Start to Year, Beware Bear Wedge, and with Volatility: Stretching Into Oversold I’m looking to sell equities on any weakness.
EDIT: I think Cobra may have beat me to the punch on this indicator today. Check it out here.
