The percentage of stocks above their 200 day MA is a very interesting chart to watch, mainly because it is a gauge on how the herd is doing. At least from how I'd like to understand it. In any case the bullish bearish trend has again shifted to the bearish side, and the last few times the percentages shifted to bearish, we had a dip. Particularly during Aug. 2014, Mid-Late Sept. 2014, and late Feb.-Mar. 2015.
I can dismiss this indicator if it was small zigzagging affair, but the fact is that the price movements have been impulsive whenever the bearish signal was triggered. It is not to say that we are going to crash, but increase risk in acceleration doesn't help trying to say we won't crash either.
I am just laying out the view of a sharp move until we see a move back above the bullish trend.
No comments:
Post a Comment