Update on the T2108
Below is a two-year look at the T2108 Oversold/Overbought indicator. We are basically in the mid-range showing no significant extremes. I would expect us to dip below the 20's before the market begins reversing to any large extent.
The T2108's purpose is to measure the percentage of stocks trading above their 40-day moving average. There is a little more to it that Worden doesn't disclose, but nonetheless, it is a valuable tool for gauging the overbought/oversold conditions of the market at hand.
Here's the T2108 Chart.