Nasdaq Percentage of stocks above 50 DMA

Has the Nasdaq topped out? Let us see the breadth charts to analyse. One way is to simply see the Percentage of stocks in the Nasdaq which are above the 50 Day Moving Average (DMA).

See how this ratio plunged below the 20-25 zone in March during the Covid crash. This zone ( shown by the yellow line) has provided support numerous times in the past. Currently it is holding well. If we are to go below this support, it is time to be extremely bearish. But currently, we can continue being long with a bit of caution.

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