{"id":575992,"date":"2010-05-23T10:47:04","date_gmt":"2010-05-23T14:47:04","guid":{"rendered":"http:\/\/www.businessinsider.com\/market-oversold-indicator-2010-5"},"modified":"2010-05-23T10:47:04","modified_gmt":"2010-05-23T14:47:04","slug":"the-market-is-massively-oversold-based-on-this-indicator","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/575992","title":{"rendered":"The Market Is Massively Oversold Based On This Indicator"},"content":{"rendered":"

Here’s one reason to believe that bearishness is getting long in the tooth. Less than 2% of S&P 500 stocks are above their 52-week moving average.<\/p>\n

Basically the entire market has been creamed and historically this has been a decent trading opportunity.<\/p>\n

Traders’ Narrative:<\/a><\/p>\n

“…a number of significant buying opportunities have been identified in the past after periods of market weakness have caused the percentage of stocks above their 10-day moving averages to drop below 10%.”<\/p>\n

\"Chart\"<\/p>\n

…<\/p>\n

I mentioned the financial and energy sector in passing yesterday as being extremely oversold with just 1% (or less) of stocks closing above their 50 day moving average. Today the banks got a major boost, rising much more than the general market proxies. Most are attributing this to the passing of the Wall Street regulation bill in the Senate on Thursday night. As a technically oriented trader I prefer to think of it as an expected reaction to the extremely oversold condition in that sector.<\/p>\n

Even if you believe we’re heading lower in the long-term, perhaps we’re in for a near-term bounce.<\/p>\n

(Via Abnormal Returns<\/a>)<\/p>\n

Join the conversation about this story »<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Here’s one reason to believe that bearishness is getting long in the tooth. Less than 2% of S&P 500 stocks are above their 52-week moving average. Basically the entire market has been creamed and historically this has been a decent trading opportunity. Traders’ Narrative: “…a number of significant buying opportunities have been identified in the […]<\/p>\n","protected":false},"author":6205,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-575992","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/575992","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/6205"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=575992"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/575992\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=575992"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=575992"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=575992"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}