This morning on the Squawk Box, Art Cashin cited the fact that with over 76% of the S&P 500 trading over their 50-day moving averages, we might be in overbought conditions. He referenced Bespoke Investment Group's analysis that shows when 75-80% of the S&P trade above the 50 day mark, rally's typically pull back.
Looking at the Dow 30 you will see a similar situation. As of 10:15M this morning, 77% of the Dow 30 are trading above their 50-day moving averages and another 17% are within 5% of crossing above this technical bechmark. Only 7%, or 2 companies, are well below their 50-day averages, General Motors and Kraft.
The story is different for the 200-day moving averages. Yesterday, IBM and Verizon crossed over their 200-day moving averages, joining Home Depot as the only Dow components trading above the longer term average. Home Depot crossed over two week ago. Of course, all of these 200 day averages are still downward sloping. The last time IBM traded above its 200-day average was back in September 2008. Verizon and Home Depot last crossed above their 200-day averages back in January before falling back. There are another three or 10% of the Dow stocks within 5% of their 200-day averages. The table below shows where each Dow component is trading with respect to their moving averages.