What's the T2108 Looking Like
One of my most popular charts that I publish is this Worden T2108 indicator that I try to put out once a week. Its 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.
As you can see the indicator has bounced very decisively over the past couple of weeks after almost reaching all-time lows during the month of May. It reached 50 on the indicator which tends to be a pivot point for whether the bounce is sustainable or merely a head fake that crushes the optimism of the bulls. Yesterday's action seems to dictate the latter.
Here's the Worden T2108 Indicator.