The S&P 500 Financial sector is now 28.5% above its 50-day moving average. Below we highlight the historical 50-day moving average % spread for the sector going back to 1990 (as far back as daily sector pricing goes). As shown, just as the sector hit extremes on the oversold side in recent months, we've now hit extremes never seen before on the overbought side.
Looks like it spent a long time in the 30-40% oversold so why won't it do the same in overbought territory. Just playing catchup now.
Posted by: StoneFoxCapital | April 16, 2009 at 06:55 PM
Makes sense they are overbought look at the the % of NAZ stocks above their 50day moving average--http://is.gd/sRZf
& NY--http://is.gd/fWXX
They are at levels not seen since 2003.
Posted by: Derrick | April 16, 2009 at 11:08 PM