200 Dma Test Breaks down

Among the Various factors to consider while taking a bullish or bearish view on markets is studying the market internals. So I started testing the market for stocks above or below the 200 dma in 2016. At the March 2015 top there were 3 quarters of weak readings before the market topped and in Sept 2016 one quarter. In June last year we did get a negative reading but all we got was more volatility in midcaps till Dec but no market top. However look at it now. Over the last 5 years the higher highs in the Nifty did not see higher highs in the number of stocks above the 200 dma, and now at the end of March 2018 we have a massive negative divergence and more stocks below the 200dma than at the 2016 bottom. Only 26% of stocks are above the 200dma. This data can be read both ways. You may take 26% as an oversold signal to start buying beaten down stocks, or look at the negative divergence as a sign of the start of a bear market. The lowest reading on this chart is 13% in June 2013, if we are in a bear market then readings should go back there or even lower before it is done. You know which camp I am in.