The stock market has had a tremendous run the last few weeks culminating in a move to multi-year highs in all the major Indexes after the Fed meeting Thursday. This type of a move and the new highs usually has the bears drooling and the even the bulls talking about protecting gains against a pullback. But there is at least one indicator that is showing that there may be a lot more room to run in this leg higher.
The chart below shows the percentage of stocks trading above their 200 day Simple Moving Average (SMA) with the S&P 500 (SPX) in purple behind it. Notice that it is currently running at 81% with the S&P rising even after this massive move. But what is most interesting about this chart is that the last 4 major pullbacks in the S&P did not happen until this indicator moved above 87%. That still leaves a lot of room higher!
Disclaimer: The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
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Don’t Sell The Market Yet!
Published 09/14/2012, 08:11 AM
Updated 05/14/2017, 06:45 AM
Don’t Sell The Market Yet!
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