Breadth Takes A Nose Dive

Below we highlight one-year charts of the percentage of stocks above their 50-day moving averages in the S&P 500 and its ten sectors.  After coasting along at 80% or higher for a couple of months, the percentage of stocks above their 50-days in the S&P 500 has fallen to 53% in a matter of days.  Had we not rallied off the morning lows today to move into positive territory, the percentage would have probably fallen below the 50% threshold for the first time since mid-July. 

While the S&P 500 as a whole remains above 50%, there are three sectors that currently have less than 50% of stocks trading above their 50-day moving averages -- Industrials (43%), Materials (47%), and Utilities (31%).  The Financial sector is currently right at 50%.  Constumer Staples has held up the best with a current reading of 71%, while Energy ranks second best at 60%.

Investors who would like to track this breadth indicator on a regular basis can do so with a subscription to Bespoke Premium.

 

 

 

 

 

 

Comments

[ENT doctor]

The graph looks all the same.

Luke Hamilton