When ____ of stocks are trading above the 200-day moving average,the market is considered ____,and subject to a ____.
A) 20%, oversold, negative correction
B) 80%, overbought, negative correction
C) 80%, oversold, positive correction
D) 20%, overbought, positive correction
E) None of the above

Question

Quizplus · Accepted Answer

When 80% of stocks are trading above the 200-day moving average, the market is considered overbought, which means that investors have bid up stock prices to levels that may not be sustainable. This usually precedes a negative correction or a bearish trend in the market.

When ____ of Stocks Are Trading Above the 200-Day Moving