A Second Oversold Period Gives 200DMAs A Fresh Challenge

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AT40 = 15.8% of stocks are trading above their respective 40-day moving averages (DMAs) – 2nd day of oversold period following 4-day oversold period
AT200 = 33.9% of stocks are trading above their respective 200DMAs (up 6 percentage points)
VIX = 20.1 (15% increase)
Short-term Trading Call: bullish

Commentary
The 200-day moving averages (DMAs) still feature prominently in the market’s now protracted struggle to slog through oversold trading conditions. Almost like magic, the S&P 500 (via SPDR S&P 500 (NYSE:SPY)) closed the day right on top of its 200DMA after a 1.4% loss.

Read more at : https://www.investing.com/analysis/a-second-oversold-period-gives-200dmas-a-fresh-challenge-200349321

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