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 8/8/11.
With yesterday’s action, only 2% of high relative strength stocks were trading above their 50 day moving average. This is more oversold than the trough of correction of last summer. The last time this index was this low was in the depths of the bear market of 2008.
[...] just read Andy’s post about the High RS Diffusion Index. My first reaction was, “Wow, that’s a really low number!” My second reaction [...]