Very Bullish and Very Overbought?

By: Marty Chenard | Tue, Jan 22, 2013
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Very bullish and very overbought is one way to describe the market based on this stock count on the S&P 500.

This chart is derived from doing a count every night on the number of Strong Stocks and Weak Stocks on the S&P 500. Since it is based only on Strength levels, it measures the S&P 500's unweighted stock action. (We post this chart every day on the Standard site (Section 4, Chart 1).

On Friday, the closing count was: 443 positive stocks, and only 57 negative stocks. Pretty bullish isn't it? At the same time, note the peak move on January 4th. when the count of positive Strength stocks went to a high of 454 out of 500 S&P stocks ... that was 90.8% of the S&P 500.

Such a high count is typically very bullish or in overbought territory, so be careful as risk levels are elevated at these kind of numbers.

S&P 500 - number of Strong Stocks and Weak Stocks



Marty Chenard

Author: Marty Chenard

Marty Chenard
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Tel: 828-296-1200

Marty Chenard is an Advanced Stock Market Technical Analyst that has developed his own proprietary analytical tools and stock market models. As a result, he was out of the market two weeks before the 1987 Crash in the most recent Bear Market he faxed his Members in March 2000 telling them all to SELL. He is an advanced technical analyst and not an investment advisor, nor a securities broker. is dedicated to Stock Market Investors who want the best information on stock charts, stock market trends, stock market timing and technical analysis.

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