Both the New York Stock Exchange Index (NYA) and the S&P 500 Index (SPX) are down from their recent highs 3.7% and 3.2%, respectively. Although the magnitude of the declines is not large, the indices are looking oversold. The relative strength index, the MACD indicator and the stochastic indicator are indicating oversold levels as well. It should be noted that the MACD is less useful as an oversold market indicator as it is unbounded. The MACD is most useful in determining market turning points when crossovers occur with the MACD line (green line in bottom pane) and the red signal line.
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| From The Blog of HORAN Capital Advisors |
In looking at the percentage of NYSE stocks trading above their 50 and 150 day moving averages, these two measures are near levels where past market sell offs have bottomed. Certainly, these percentages can go lower.
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| From The Blog of HORAN Capital Advisors |
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| From The Blog of HORAN Capital Advisors |
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