(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. It helps to identify extremes in market sentiment that are likely to reverse. To learn more about it, see my T2108 Resource Page. You can follow real-time T2108 commentary on twitter using the #T2108 hashtag. T2108-related trades and other trades are occasionally posted on twitter using the #120trade hashtag. T2107 measures the percentage of stocks trading above their respective 200DMAs)

T2108 Status: 45.8%
T2107 Status: 33.6%
VIX Status: 15.9
General (Short-term) Trading Call: neutral
Active T2108 periods: Day #42 over 20%, Day #41 over 30%, Day #12 over 40% (overperiod), Day #1 below 50% (underperiod), Day #16 under 60%, Day #356 under 70%

Reference Charts (click for view of last 6 months from Stockcharts.com):
S&P 500 or SPY
SDS (ProShares UltraShort S&P500)
U.S. Dollar Index (volatility index)
EEM (iShares MSCI Emerging Markets)
VIX (volatility index)
VXX (iPath S&P 500 VIX Short-Term Futures ETN)
EWG (iShares MSCI Germany Index Fund)
CAT (Caterpillar).
IBB (iShares Nasdaq Biotechnology).

Commentary
In the last T2108 Update, I noted how the market’s strength at the time seemed to run contrary to a host of other bearish signals. That surprising strength continued to start trading for December when the S&P 500 (SPY) launched for a 1.1% gain. The close represented a breakout above a very tight range of churn that held the index in place for 7 trading days. Today, December 2, the S&P 500 perfectly reversed all those gains and brought bearish highlights back into prominence.

First, note in the chart below how all the trading action continues to unfold neatly right on top of the 20-day moving average (DMA).

The S&P 500 reversed a strong start to December trading but still sits neatly above support at its 20-day moving average (DMA)