Market Indicators

New Lows are outnumbering new highs on all but the longest time-frame. Oversold stocks are also outnumbering overbought stocks, but there aren't many at the extreme or ridiculous levels, so it seems to me the selling pressure could continue for a while yet. Along the same lines, the % of stocks above the 20 day moving average is low and falling, but hasn't hit an extreme low yet (this is a similar, though not identical indicator to Worden's T2108). Meanwhile 2/3 of US stocks are above their 200 day average, which in my interpretation means that the majority of stocks still have major support levels below their current prices. This means there could be a decent bounce or up-move in the next week or so. Keep an eye on the all-time highs. If they put in double-tops (MED is at the risk of doing this) or sell off heavily, then watch out; but, if they can put in bases by moving sideways then there's the opportunity for big gains when the next bounce happens.

US Stocks Making New Highs and Lows 14-May-2010
Period	New Highs	New Lows	Hi vs Lo	Hi/Lo Ratio
20 day1	59	190		0.3
50 day1	43	136		0.3
52 week1	23	31		0.7
All-Time2	59	8		7.4
1 Out of 5038 US Stocks on FINVIZ  2 From uglychart.com as of yesterday's close

US Stocks in Overbought and Oversold Conditions 14-May-2010
Level	Overbought	Oversold	Overbought vs Oversold	OB/OS Ratio
Mild RSI 60 vs 40	383	1173		0.3
Moderate RSI 70 vs 30	90	183		0.5
Extreme RSI 80 vs 20	12	18		0.7
Ridiculous RSI 90 vs 10	0	1		0.0
1 Out of 5038 US Stocks on FINVIZ

US Stocks in Relation to their Moving Averages 14-May-2010

Related Posts:

• Previous Market Update
• US All-Time Highs Last Week
• Canadian All-time Highs from Last Week
• Do All Time High Stocks Outperform? Research suggests they do.