S&P 500 and Sector Breadth Levels -- Risk On
Friday, February 3, 2012 at 10:42AM As shown in the chart below, the percentage of stocks in the S&P 500 that are now trading above their 50-day moving averages stands at 86%. This is a high reading, but it's still not as high as it got back in late October of last year.
Four sectors currently have more than 90% of their stocks above their 50-days, and they're all cyclical in nature. Materials has the highest reading at 97%, followed closely by Financials at 96%. Technology and Industrials both stand at 92%. What is even more noteworthy is how weak the non-cyclical Utilities and Telecom sectors have gotten. 57% of Telecom stocks are above their 50-days, while the reading is just 52% for the Utilities sector. Investors are clearly shunning the safety plays right now in favor of riskier areas of the market.
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