(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. It helps to identify extremes in market sentiment that are likely to reverse. To learn more about it, see my T2108 Resource Page. You can follow real-time T2108 commentary on twitter using the #T2108 hashtag. T2108-related trades and other trades are occasionally posted on twitter using the #120trade hashtag. T2107 measures the percentage of stocks trading above their respective 200DMAs)
T2108 Status: 46.3% (jumped from 35.2%)
T2107 Status: 58.7%
VIX Status: 16.6 (fell 11.3% after falling 21.4% the day prior)
General (Short-term) Trading Call: bearish
Active T2108 periods: Day #96 over 20%, Day #2 over 30%, Day #1 over 40% (ending 1 day under 40%), Day #4 under 50%, Day #4 under 60%, Day #14 under 70%
Commentary
The United Kingdom has apparently already gotten over Brexit. The FTSE 100, a listing of the 100 largest stocks on the London Stock Exchange (LSE), closed HIGHER than it did on the day the UK people went to the polls to vote on membership in the European Union (EU).
Â
The FTSE 100 has already hurdled the Brexit hiccup
So no wonder that financial markets in the U.S. look ready to forget all about Brexit.T2108, the percentage of stocks trading above their respective 40DMAs, jumped by leaps and bounds for the second straight day to close at 46.3%. The S&P 500 (SPY) gained another 1.7% to close just below resistance at its 50-day moving average (DMA). The NASDAQ (QQQ) looks ready to challenge important resistance at the converging 50 and 200DMAs. The volatility index, the VIX, was smashed for a second straight day: it now hovers just above the 15.35 pivot in a move that says calm is quickly returning to the market.
Â
The S&P 500 continues its sharp rebound from its 200DMA breakdown.
Â
The NASDAQ stares down a critical retest of converged resistance.
Â
The volatility index is over Brexit as it closed at a near 3-week low.
