Equity Markets Overbought But Likely to Stay That Way
With major market indices registering multi-week highs it does not take a rocket scientist to figure out that equity markets have probably moved into an overbought condition. From a technical perspective we find the best indicator of the degree to which a market is overbought or oversold is the 200 day moving average ratio (the ratio of stocks trading above their 200 day moving average). In the past whenever the NYSE and NASDAQ moving average ratios moved above 80% there was a better than even o