Yet another signal the market is oversold to a degree consistent with prior lows.

Bespoke Investment Group has published another compelling chart (here) displaying the relationship of the percentage of stocks trading 1 std. deviation below their 50 day moving average stock price relative to the S&P 500 price index.  It should be no surprise that the present condition where over 50% of S&P 500 stocks are trading substantially below their 50 day moving average is unusual and has been an accurate signal of a short term market bottom over the last 12 months.  Jeb Terry, Sr. June 7, 2011

Source: Bespoke Investment Group

Aberdeen Investment Management – a guide service for micro-cap technology investment

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