Bespoke's Sector Trading Range Charts

Below we provide our trading range charts for the S&P 500 and its ten sectors.  For each chart, the light blue shading represents between one standard deviation above and below the 50-day moving average.  The red shading is between one and two standard deviations above the 50-day, and vice versa for the green shading.  An initial move into the red shading is considered "overbought," and a move to the top or above the red shading is a level where a further advance in the near term rarely happens.  Moves into the green shading are considered "oversold," which is something this market hasn't experienced in quite some time now!  It will happen again at some point, however, we can tell you that much.

As shown below, the S&P 500 has been trading in overbought territory since early March.  A similar pattern occurred from late November through mid-January.  Taking a look at sectors, the market decline last Friday moved most of them either right to the bottom of the red shading or back inside the light blue shading.  Technology and Consumer Discretionary remain the most overbought sectors at this point.  Friday's move lower eased some of the extreme overbought readings that a lot of areas were experiencing at the time.  For now, solid uptrends remain in place.

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