{"id":710700,"date":"2010-04-07T07:23:43","date_gmt":"2010-04-07T11:23:43","guid":{"rendered":"http:\/\/www.businessinsider.com\/why-all-sectors-are-now-overbought-oversold2010-4"},"modified":"2010-04-07T07:23:43","modified_gmt":"2010-04-07T11:23:43","slug":"the-challenge-with-technicals-all-sectors-now-look-either-overbought-or-loaded-with-momentum","status":"publish","type":"post","link":"https:\/\/mereja.com\/index\/710700","title":{"rendered":"The Challenge With Technicals: All Sectors Now Look Either Overbought Or Loaded With Momentum"},"content":{"rendered":"

\"chart\"<\/p>\n

The technicals are starting to look shaky, for all sectors, according to Bespoke Investment Group (BIG).<\/p>\n

BIG:<\/a><\/p>\n

The light red and green regions represent between one and two standard deviations above (or below) the 50-day moving average (DMA), while the dark red (and green) shading represents more than two standard deviations above (or below) the index’s 50-DMA. As shown in the chart, the S&P 500 and all ten sectors are currently trading at overbought levels, so the recent strength in equities has been a tide that has lifted nearly all boats. To further illustrate this point, we would note that as of yesterday’s close, 92.4% of the stocks in the S&P 500 are trading above their 50-DMA while 77.4% are overbought (1+ standard deviation above 50-DMA).<\/p>\n

A commenter on Bespoke’s site replies:<\/p>\n

OB [over-bought] conditions can remain for an extended period of time. It is important to note this condition but itself is not sufficient to be a trigger for going Short.<\/p>\n

One challenge with technicals is that while some would agree with Bespoke’s take of the data above, some could also see the above data as a sign of substantial momentum. At the very least, the technicals remind us of just how quickly and broadly the S&P 500 has snapped up since early February.<\/p>\n

\"Chart\"<\/p>\n

Join the conversation about this story »<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

The technicals are starting to look shaky, for all sectors, according to Bespoke Investment Group (BIG). BIG: The light red and green regions represent between one and two standard deviations above (or below) the 50-day moving average (DMA), while the dark red (and green) shading represents more than two standard deviations above (or below) the […]<\/p>\n","protected":false},"author":4069,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4821],"tags":[],"class_list":["post-710700","post","type-post","status-publish","format-standard","hentry","category-news"],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9NivD-2YSU","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/posts\/710700","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/users\/4069"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/comments?post=710700"}],"version-history":[{"count":0,"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/posts\/710700\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/media?parent=710700"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/categories?post=710700"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/tags?post=710700"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}