Bespoke's Sector Snapshot

As the market suffers a severe breakdown intraday, below we highlight our six-month trading range charts of the S&P 500 and its ten sectors.  Moves into or above the red zone are considered overbought, while moves into or below the green zone are considered oversold.  As you'll see from the charts, the S&P 500 and most sectors have been in solid uptrends for awhile now, with prices generally remaining above their 50-day moving averages and bouncing up and down within an upward sloping channel.

After this morning's sharp reversal, the S&P 500 is still trading at the top of its range and quite a few points above its 50-day moving average.  Towards the end of September, the S&P 500 got down to its 50-DMA and then bounced at the start of October.  With this month trending nearly exactly like it did last month, the 50-day is a likely target to the downside.

Financials, Industrials, and Materials (all cyclicals and market leaders) have already gotten down to their 50-DMAs, so we'll see if they can hold today.  Health Care has already broken below its 50-day and doesn't look good.  Investors are quickly moving out of this sector as reform talks in DC get hotter and hotter.  Technology has been strong in recent days with big moves from Apple (AAPL), Microsoft (MSFT), Google (GOOG), and Amazon.com (AMZN).  Finally, after surging to extreme overbought levels, the Energy sector is pulling back along with the price of oil, but it still has a ways to go just to move back to the top of its normal trading range.

 

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