One of my most popular charts that I publish is this Worden T2108 indicator that I try to publish about once a week. Its 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, is a valuable tool for guaging the overbought/oversold conditions of the market at hand.
As you can see, it has come off of its lows here quite a bit since the May sell-off a few weeks ago, and by many standards, it is considered oversold still – which could mean that we have further upside action to go, before this market considers heading lower anytime soon.
Here’s the T2108 Chart.