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Indicators Were Pointing Towards High Levels
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The recent drop in the stock market was expected by most traders, esspecially after the recent 10 month rally. Even though the recent drop is only still classed as a correction, one can see on the following chart that stocks are being sold around high levels. The following indicator which measures the amount of stocks above their 200 day moving average has recenly reached extreme levels. One must note that even though this is one indicator out of many used by technicians, it shows the extreme level of the market
Technical Chart - Stocks above their 200 day moving average

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