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Very Bullish and Very Overbought?
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.