T2108 Update

T2108 which is the Worden Brothers indicator for the percent of stocks above their 40 day moving average has fallen from the low 80's to the mid 60's in two days. This brings this index closer to a more neutral reading but it is still far from being over-sold. {You can see a quick explanation of how I use T2108 on my 9-2-06 post}. Still the market has had a bit of a bump over the past couple of days with the NASDAQ losing over 2% in that time. Might be too much too quick but it does look like the market short term is undergoing a change of character. We raised some more cash in appropriate client accounts yesterday morning.