Hot Breadth
Friday, September 24, 2010 at 05:49PM Heading into trading today, 85% of stocks in the S&P 500 were trading above their 50-day moving averages. The last time breadth was this high was back in March/April when the major indices were making new bull market highs on a daily basis. Strong underlying breadth is a sign of a healthy market that's running on all cylinders, but it can get too overheated.
Below we highlight the percentage of stocks above their 50-day moving averages in each S&P 500 sector. Health Care has the highest reading at 94%, followed by Consumer Discretionary at 90%. Industrials, Technology, Utilities, and Telecom all have readings higher than the S&P 500 as a whole, while Financials, Materials, and Energy have the weakest readings.
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