The chart below measures the percentage of high relative strength stocks that are trading above their 50-day moving average (universe of mid and large cap stocks.) As of 7/6/10.
The 10-day moving average of this indicator is 22% and the one-day reading is 15%. This indicator has been bouncing around in oversold levels for two months now. Dips in this indicator have often provided good opportunities to add to relative strength strategies.
