It is uncommon for the major market indices to show up in my momentum scans. It's rarer still when they all do. The tendency thereafter has been a sharp pullback.
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| IWM Momentum Phase |
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| NYSE Momentum Phase |
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| QQQ Momentum Phase |
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| SPY Momentum Phase |
After spending a lengthy period of time elevated at extended levels, the % of stocks above their 20 period moving average dipped below 70.
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| % Stocks > 20 Period MA |
On a higher time frame and also after an extended period of time at elevated levels, the % of stocks above their 40 period moving average has also declined, but not significantly enough to drop under the 70 zone.
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| T2108 |
These are the periods when a prudent speculator may want to consider transitioning from trader to risk manager. The lock out rally has been forgiving, maximum adversity may not be so.
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