Percentage of Stocks Above 50-Day Moving Averages

The recent pullback has brought the percentage of S&P 500 stocks trading above their 50-day moving averages down to 72% from its high of 92% a couple of weeks ago.  As shown in the chart below, this number is still relatively high compared to where it has usually been over the last year.  During strong bull markets, the number will generally stay above 50% the entire time, bouncing from 50%-100% as the market trades up and down in an uptrend channel.  As long as it can remain above 50%, a pullback in the indicator is not worrisome.  Two defensive sectors -- Utilities and Telecom -- are the only ones with less than 50% of their stocks above their 50-days.  Energy and Materials currently have the highest breadth readings with 85% and 86% of stocks trading above their 50-days.

 

 

  

 

 

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