Stop Market Risk Logo

Stop Market Risk

"Success in Trading in the Stock Market."

  Get your Free Ebook!

  The Mindset of a Good Trader


Get It!
The Mindset of a Good Trader Ebook

Overbought Condition in the Stock Market

Posted by GoodTrader on Thu, 24 Jan 2013 , Add your Comments !

Nasdaq Percent of Stocks Above 50 Day Moving Average

A good way to determine the levels of oversold or overbought of the stock market is by using the indicator that measures the percentage of stocks that are above their 50-day moving average.

It is a breadth indicator that you can find under the symbol $NAA50R in

This indicator is currently in overbought zone, which makes me think that the odds are in favor of a pullback in the markets.

Markets are always oscillating between the two extremes. The stock market can remain in overbought condition for some time but now is the time to start to take precautions and stop thinking that the market can continue to rise indefinitely.

In the end the price is what matters, but you must be prepared for a bearish environment at least until this indicator falls under 20.

Happy Trading!
The Mindset of a Good Trader Ebook

  If you enjoyed this article, get the free pack!

  Name:   Email:   Get It!

Related posts that may interest you :
 - Bullish Above 2715 in the NASDAQ 100 Index
 - Current Market
 - Current Market
Posted under the following tags : Market Timing , Bearish , Permalink
The Financial Ad Trader
The Financial Ad Trader - banner exchange


GoodTrader I am GoodTrader, an Independent Trader.

I have learned trading the hard way, but you can make it easy.

I want to help you to succeed in the stock market, are you ready?

Highlighted Posts
Don't Trade the News!
Trends in Highly Correlated Markets
Are You Able to Stay Out of the Markets?
Hunt the Market Bubbles
The Smart Trader
How to Become an Expert Trader
You Need a Trading Journal
10 Things You Should Never Do
Calculating the Risk - The 1% Rule
Lessons from Alexander Elder
Focus on a Single Strategy and Master It!
Are Momentum Stocks the Best Choice?
Lessons from Paul Tudor Jones
Lessons from Martin Schwartz

Social Media and RSS

Follow GoodTrader1 on TwitterBe my Friend in FacebookAdd me on Google plusSubscribe to Stop Market Risk RSS feed by EmailSubscribe to Stop Market Risk RSS

Top Friends
PUG Stock Market Analysis, LLC
Chart Learning
Add your site!

Stop Market Risk Members Section

This material is provided for informational purposes only, as of the date hereof, and is subject to change without notice. This material may not be suitable for all investors and is not intended to be an offer, or the solicitation of any offer, to buy or sell any securities.

Copyright 2011-2014 All rights reserved.


Finance Blogs Top Investing Sites