The stock market has a way of surprising and our overbought indicator suggests investors banking on uninterrupted gains could be disappointed.
Weekly, we track how many of the 1,500 widely-traded stocks in our marketplace universe are trading 5% or higher above their 200-day moving average. The ratio provides insight into sentiment, and currently, its 50% reading puts it in rarefied air only seen twice before since we began compiling this data in 2013. Ominously, both of the previous 50% plus readings preceded significant declines in the market.
The first time we saw this indicator eclipse