S&P 500 vs its stocks above the 200 day MA: Bottom chart shows the S&P since 2008. The recent run up on the chart hides many of the details on this weekly chart. The chart on top, tracks the percentage of stocks above their 200 day Moving average for stocks that make up the S&P 500 .
In April of 2021, 96% of the S&P stocks traded above their 200 day MA. Currently just about 45% remain above their 200 day MA.
Bulls and Bears need to decide who is going to take over. In the past, the 40%-50% range was an area to pivot from on a correction.
Other years this represented a staging area for the "smart money" to reposition and watch the market move lower.
A similar 20% correction to other years has the S&P measured down to 3840 area.
A major break with 70% or more stocks trading below their 200 day MA could see a more serious 35%-50% correction.
In April of 2021, 96% of the S&P stocks traded above their 200 day MA. Currently just about 45% remain above their 200 day MA.
Bulls and Bears need to decide who is going to take over. In the past, the 40%-50% range was an area to pivot from on a correction.
Other years this represented a staging area for the "smart money" to reposition and watch the market move lower.
A similar 20% correction to other years has the S&P measured down to 3840 area.
A major break with 70% or more stocks trading below their 200 day MA could see a more serious 35%-50% correction.
