The ratio smooths into a more rounded bottom when the number of stocks above the 50-day MA is greater than the number above the 200-day MA. This situation is a little more helpful in pin-pointing bottoms, especially when the ratio shows twice as many stocks above the 50-day MA than 200-day MA (i.e. a ratio of 0.50 or less).
Currently there are just over twice as many Nasdaq stocks above their 50-day MA than 200-day MA (0.47) which favors higher prices over the next 6-months (when the next spike high can be expected). It is by no means a perfect indicator, but from a long term perspective there is definite value to be found for buyers at this time.
