Percent of Stocks in S&P 500 Below 50 Day Moving Average Hit 2008 Lows

I like to look at this chart - Percent of S&P 500 stocks below the 50 day moving average - for a feeling of how oversold things are....and it's quite nasty. The reading is actually worse than the low of March 2009 and at lows of fall 2008. Generally once you are below 30% you have a quite oversold condition... 20% even more so, but when you get these 5-10% readings it is usually quite rare.