AT40 = 23.0% of stocks are trading above their respective 40-day moving averages (DMAs) (low of 18.9%)
AT200 = 22.6% of stocks are trading above their respective 200DMAs (new 32-month low)
VIX = 22.6 (as high as 25.9)
Short-term Trading Call: cautiously bullish
It was a wild day in the stock market, but the market still avoided closing in oversold territory. AT40 (T2108), the percentage of stocks trading above their respective 40DMAs, dropped to 23.0%, a fraction below its lowest close at the end of November’s sell-off. At one point, AT40 WAS oversold with an 18.9% reading (oversold is below 20%). AT200 (T2107), the percentage of stocks trading above their respective 200DMAs, dropped to a new 32-month low at 22.6%. Still, the S&P 500(SPY (NYSE:SPY)) managed to close with a fractional gain of 0.2%. The index traded as low as 1.9% below the previous close as sellers took early control of the stock market.