‘Sold out’ might better describe the current state of the stock market.
Less than 10% of all stocks listed on the NYSE currently trade above their 50-day moving average and this is the lowest reading for the McClellan Oscillator in all the data available from Stockcharts.com (roughly the past 11 years).
We saw similar readings in the late summer of 2007 just as the financial crisis was getting started so this doesn’t necessarily mean a major bottom is near. It does suggest that the current bout of selling may be close to exhaustion and that we are likely due for at least a relief rally pretty soon.
I will be watching the action intently over the next few trading sessions… while wearing my new hat.