Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value of Perfect Information -- Ignore unavailable to you. Want to Upgrade?

To: pogohere who wrote (215)	11/25/2008 11:35:25 PM
From: Q8	Respond to of 262

Good question pogohere: Think of stock market breadth as an X-ray snapshot of what's going on inside the market. By using and studying these indicators you can get a very good idea of the sentiment and power driving the current market climate and how the near future's sessions might play out. The number of stocks trading below their 200 day moving average is a very important number. As the 200 day moving average is said to represent the line in the sand to determine if the bulls or bears are currently controlling the market, it would stand to reason that the more stocks trading below their 200 day moving average, the weaker the market is and the more control the bears have. Also short sellers love to wait for a stock to fall below the 200dma before starting to short.. you would think by now the market would have created the mother of all short squeezes.. that has not been the case this time around though.