When is the 30-week moving average considered bearish?

The 30-week moving average is considered bearish when 30% of stocks are below it because it indicates a predominant weakness in the overall market sentiment. When a significant portion of stocks is trading below the moving average, it suggests that the broader market is experiencing selling pressure or a downtrend.

In technical analysis, moving averages serve as key indicators for measuring long-term trends. If 30% of stocks are below the 30-week moving average, it reflects that a considerable number of stocks are not participating in upward momentum and may be indicative of potential market deterioration.

The other options describe scenarios where higher or lower percentages of stocks are above or below the moving average. For instance, when a greater percentage of stocks are above the moving average, it typically signals a bullish market sentiment rather than a bearish one. Such thresholds of stocks above or below the moving average help traders assess market strength or weakness and make informed trading decisions based on prevailing trends.