Charts of the Week: Friday, May 18, 2012

Today, I want to briefly share a few of my favorite observations from this past week.

Looking at the charts below, it is very obvious that the stock market has reach those traditional oversold conditions, coiled for a rebound rally on any promising news.

We see the same pattern from our chart shown below of the percentage of stocks in the combined S&P 400 and S&P 500 that are trading above their 50-day moving average (orange line).

Have a great weekend!

Don Hays

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