Stock Market Scout acts as a quick guide to where the market stands from a technical analysis standpoint. Since it is based on historical data is works as a lagging indicator. Coupled with Stock Market Levels it can provide guidelines to market turning points where buying PUTS and CALLS at extremes can act as insurance or a low risk entry into the market.
The percentage of stocks over the 50 day moving average is starting to reach a sell zone. Typically this means we will either see the overall market starting to trend down, or rotations into other sectors that have not be part of the overall rally.