The chart below is from our Morning Lineup, which is available to all Bespoke Premium and Bespoke Institutional clients and is sent out each morning about one hour before the open.  For a sample of this report, check out today’s version here.  In the chart below, we show the daily percentage of S&P 500 stocks that finished the day yesterday at oversold (green) and overbought (red) levels.  Typically, you tend to see a large number of oversold stocks near a market low and a large number of overbought stocks near a market high.  With the market being so weak this year, the percentage of oversold stocks has routinely exceeded the percentage of overbought stocks.  However, following yesterday’s rally which capped off a string of back to back to back 1%+ gains, the percentage of overbought stocks exceeded the percentage of oversold stocks for the first time this year.  Hey, it’s a start!

Percent OBOS stocks

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