This is a chart that I don’t often publish, but I found it interesteing just how steep and extreme it is.
The T2108 is a Worden specific chart that shows the number of stcks trading above the 40-day moving average. Only twice have we seen moves in the market that were more extreme than what we’ve recently gotten, and each time they were met with at least a short-term pullback in the markets (the rubber-band effect). The first occassion occurred in 2003 after an extended Nasdaq sell-off due to the Dot-com bubble. The second one occurred in 2009 off of the March lows that marked the bottom (for now) of the housing crisis.
