Yesterday’s crash brought the number of stocks above their 50 day moving average at the NYSE to just 26%. This has proven to be a relatively reliable buy indicator in each of the last three market sell-offs. However, a longer perspective shows that this indicator fell much farther in the 5 sell-offs that resulted during the credit crisis. Is this sell-off just another hiccup during the continuing bull market or this is truly a return of the credit crisis and just the beginning of another brutal sell-off?
Practical Views on Money