With only 22 % of issues on the NASDAQ Composite above their respective 50-day MA certainly qualifies as a short term oversold condition. However, the low reading does suggest weaker footing for the market in general than say just 6 months ago.

Nasdaq Composite Net 52 Week Highs-Lows 50 Day MA
nasdaq_52_week_hi_lo
Source: Redwood Technimentals Research Group

Net 52-week highs are below the zero line, and have similar readings to March ‘03. This suggests we are oversold.

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Category: Finance

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