# Stocks trading above 50-day Moving Average slip below 40% - sign of market weakness?

**URL:** <https://tribe.getbaraka.com/t/stocks-trading-above-50-day-moving-average-slip-below-40-sign-of-market-weakness/246>\
**Category:** Baraka Chat\
**Tags:** learning\
**Created:** [23 April 2021 06:32 UTC](https://tribe.getbaraka.com/t/stocks-trading-above-50-day-moving-average-slip-below-40-sign-of-market-weakness/246 "2021-04-23T06:32:05Z")\
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**Author:** ![ayushkbhatia](https://sea1.discourse-cdn.com/flex019/user_avatar/tribe.getbaraka.com/ayushkbhatia/32/69_2.png) [@ayushkbhatia](https://tribe.getbaraka.com/u/ayushkbhatia)\
**Post date:** [23 April 2021 06:32 UTC](https://tribe.getbaraka.com/t/stocks-trading-above-50-day-moving-average-slip-below-40-sign-of-market-weakness/246/1 "2021-04-23T06:32:05Z")

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Chart of the day : the percentage of Russell 2000 index members trading above their 50-day Moving Average fell below 40%, compared with about 80% for the S&P500, a smudge off a record gap.

It’s too early to tell whether this can morph into something larger, but previous instances have led to subsequent pressure on U.S. stocks

Such a selloff in the markets could also be attributed to Biden’s new tax plan, which will propose almost doubling the capital gains tax rate for wealthy individuals earning $1 million or more per year to 39.6% to help pay for a slew of social programs and the proposed infrastructure bill. The new marginal 39.6% rate would be an increase from the current base rate of 20%.

(Bloomberg)

 ![50DMA Weakness](https://us1.discourse-cdn.com/flex019/uploads/baraka/original/1X/a8924336ea0dfaadbafdb852a434310a667be601.jpeg)