Update On The T2108
Below is a two-year look at the T2108 Oversold/Overbought indicator. We are still in the mid-range just like we were last week. In fact, there hasn't really been much damage to the prices of stocks from the week prior to this past week. The prior week's reading came in at 50.07, while this week's T2108 is at 47.7. So we are still far from being oversold, and could still see much further downside in the days and weeks to come.
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.