Bespoke's Sector Trading Range Charts

Our new platform here allows us to display our graphics in an even bigger and better format!  Below we provide our trading range charts for the S&P 500 and its ten sectors.  For each chart, the light blue area represents between 1 standard deviation above and below the 50-day moving average (white line).  The red and green zones represent between 1 and 2 standard deviations above or below the 50-day moving average.  Moves into or above the red zone are considered overbought, while moves into or below the green zone are considered oversold.

As shown in the S&P 500 chart, the market moved from overbought to oversold in the blink of an eye over the past two weeks.  Today we saw a nice bounce after the index hit the bottom of the green area last Friday.  Based on these charts, last Friday was the most oversold the S&P 500 had been since the bull market began back in March.

Technology, Energy, Materials, and Telecom have taken the biggest hits during the pullback, and all four moved well into oversold territory.  Both Consumer sectors along with Health Care have held up the best recently.  It's also worth noting that the Financial sector did get oversold, but it hasn't broken down below support yet.

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