FYI: Below is a look at our one-year trading range chart for the S&P 500. The dark blue line represents the index’s price, while the white line represents its 50-day moving average. The light blue shaded area represents the index’s normal trading range, which is one standard deviation above and below the 50-day. The red zone represents between one and two standard deviations above the 50-day, and any move into or above the red zone is considered “overbought.” The green zone represents between one and two standard deviations below the 50-day, and any move into or below the green zone is considered “oversold.”
As you can see in the chart below, the S&P just moved out of overbought territory back into the neutral zone for the first time in months. However, the index remains above its 50-day and within its long-term uptrend channel.
Regards,
Ted
https://www.bespokepremium.com/think-big-blog/country-stock-market-trading-range-charts/
