Below we highlight where the S&P 500 and its ten sectors currently stand within their trading ranges. The Neutral (N) line represents each sector's 50-day moving average, while the white area represents between one standard deviation above and below the 50-day. The light red shading represents between one and two standard deviations above the 50-day, and the dark red shading is between two and three standard deviations above. The opposite holds true for the green shading. Moves into the red zone are considered overbought, while moves into the green shading are considered oversold.
As shown, the S&P 500 and six of ten sectors are currently overbought, with Consumer Staples and Health Care the most extended. And nine of ten sectors are above their 50-day moving averages, including the Utilities sector which has turned more positive lately after lagging badly in recent weeks. The lone sector below its 50-day is Technology, which is also the largest sector in the S&P 500 at roughly 20%. If it weren't for Tech's recent underperformance, the overall market would have already made a new high.
Looking for new stock ideas? Each week we publish "the Bespoke 50," a list of our favorite growth stocks in the Russell 3,000. To make the list of 50, a stock must have strong earnings growth prospects along with an attractive price chart based on Bespoke's proprietary fundamental and technical analysis.
The "Bespoke 50" is released on a weekly basis, and in it you'll find the 50 stocks that made the cut, price charts for each of them, and an Excel file that you can download as well.