Could be something or could be nothing
Morgan Stanley Spots An Extremely Rare Market Signal Which Precedes Selloffs
The percentage of NYSE stocks above 200-day moving averages has surpassed 90% for the first time since 2009. This rare event has happened only five times using weekly data going back to 1974.
Not everyone agrees: without looking at the data, Bank of America notes that the 2009 and 1975 signals occurred after “generational lows” for the SPX, and explains – somewhat hopefully – that while “market corrections are a part of the life of an investor, if history is any guide, this move above 90% for the % of stocks above 200-day MAs is less likely a sign of a major top and more likely longer-term bullish confirmation after a period of economic and market stress.”
One of the two banks is wrong, and since nobody likes unnecessary suspense, we will know who is right and who is wrong in just a few days.