Here’s the T2108 for this week, looking back at about a year’s worth of action. Between 40 and 60 tends to be where the action happens – sudden change of directions, where downtrends suddenly reverse upwards and vice-versa. We are just above the 40 mark, and with quarter-end quickly approaching, anything is bound to happen.
The T2108’s purpose is to measure the percentage of stocks trading above their 40-day moving average. There is a little more to it that Worden doesn’t disclose, but nonetheless, it is a valuable tool for gauging the overbought/oversold conditions of the market at hand.
Here’s the T2108 Chart.