Far From Overbought

The market has had a great 3-day run.  In fact, this is the first time the S&P 500 has had three consecutive days of gains of 0.75% or more since last September.  But as we noted in our prior post, the S&P is still below its 50-day moving average.  As shown below, only 45% of stocks in the index are currently trading above their 50-day moving averages.  So while we've bounced significantly this week, the market still has a long way to go before it becomes overbought.  If you're a bull and missed this week's run, there's still time to get in without doing so at over-extended levels.

Subscribe to Bespoke Premium to receive more in-depth research from Bespoke.