Formula & Calculation Mechanism
Count of S&P 500 constituents with Close > 50D MA divided by 500
Readings <20% indicate deeply oversold conditions; >80% indicates near-term overbought state.
Market Impact on US Equities & S&P 500
Oversold bounces occur when %S5TW turns up from below 25%.
Historical Precedents & Bull/Bear Regimes
Dipped to 12% during October 2023 pullback before sharp mean reversion.