The 50 Day Moving Average Bounce Scan

By | October 17, 2018

There was a clear sign that a bounce-back rally was in the cards after the sharp market sell-off.

Last week’s sell-off took the number of stocks in the S&P 500 Index that were above their 50 day moving average down to just 15%. That is an extremely low percentage indicative of a broadly oversold condition. A reading that low is usually followed by sharp rebound rally.

That’s what happened this week.

The technical importance of the major moving averages as support and resistance cannot be overemphasized. We ran a scan after the market close yesterday looking for stocks whose low of the day was below their 50 day moving average but whose close was above the 50 day moving average. A 50 day moving average bounce scan. It returned 80 results.

Here are some stocks to watch that are on our 50 day bounce list:

Apple, Adobe Systems, Advanced Micro Devices, Amgen, Activision Blizzard, Boeing, Clorox, Dollar General, Disney, Gilead Sciences, Johnson & Johnson, Lockheed Martin, Merck, Microsoft, Northrop Grumman, Stryker, Take-Two Interactive, Walmart.

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