The Percentage of Nasdaq Stocks above the 50-day MA is about to drop below 70%, having peaked at 80%. When this particular breadth index drops below 70%, the rate of decline typically accelerates.
But while the Percentage of Stocks above the 50-day MA fell, the Bullish Percents and Summation Indices advanced. The Bullish Percents are not in overbought territory, but the Summation Index hasn't much room left to run.
Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com. You can read what others are saying about Zignals on Investimonials.com.
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