The Average Stock Quietly Correcting From Overbought Condition

One way we measure the internal condition of the stock market is to measure the percent of issues that are trading above their own various moving averages. In the below charts we measure the percent of issues trading above their respective 50-day moving averages to get a sense of short to intermediate-term overbought/oversold conditions. What we find is that the average stock has made decent progress in correcting an overbought condition that persisted about a month ago, but is still quite far from being oversold, especially stocks in North America.