If they were, then why is percent of stocks above the 50 day moving average at 59%, or near pre crash levels?
Posted 13 May 2020 - 04:33 AM
If they were, then why is percent of stocks above the 50 day moving average at 59%, or near pre crash levels?
Posted 13 May 2020 - 12:31 PM
A large number of stocks above the 50 DMA is merely indicative of a strong bounce from oversold levels.
The number of stocks above the 150 DMA and 200 DMA is more insightful. Here, one sees a pronounced divergence between the cyclical-dominated NYSE (only 16 % of stocks above 150 DMA) and the Nasdaq (36 % of stocks above 150 DMA).
But I agree with your conclusion. The stockmarket is not being carried by FAANG alone but by the larger set of aggressive growth stocks - biotech, small- and mid-cap software, e-commerce, small-cap fintech, etc.
Edited by kaiser soze, 13 May 2020 - 12:32 PM.