Here’s an update on the T2108 going back about a year and a half – as you can see, the market is quickly coming off of its overbought conditions seen for most of the past month and shows a lot of potential still for more downside to this market.

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.