The T2108 is an indicator that I like to look at daily for gauging market direction and it has lately been on fire!
At the close today, 58% of stocks will now be trading above their 40-day moving average. That is the highest reading this indicator has seen since 4/28 of this year.
The indicator has finished higher seven straight days too…
And 23% higher today alone.
Seven days ago, only 12% of stocks were trading above their 40-day moving average!
That is amazing when you think about it.
In fact the surge in the T2108 has me thinking differently about this current bounce, that it isn’t about it being a dead cat bounce, but a very legitimate probability that the market continues to rally through year-end. This rally has all the markets of a rally like the one we saw this time last year. In fact both rallies started at the 12% to 13% range and ran stocks higher and nearly unabated.
Over the course of 1.5 months the SPX last year ran over 250 points before finally seeing profit taking of any kind.
So buckle up – There just might be more to come!
Here’s the T2108:
