As we mentioned in our prior post, 79% of stocks in the S&P 500 are trading above their 50-day moving averages. This is a relatively weak reading given how overbought the index is. So which sector or sectors are causing the weakness? Energy.
As shown below, just 37% of stocks in the Energy sector are trading above their 50-days, which is well below the readings for the other nine sectors. Utilities has the second worst reading at 50%, but this doesn't have as much of an impact because Utilities makes up a smaller percentage of the S&P 500 as a whole.
If Energy can pick up the pace, we'll likely see the overall breadth reading for the S&P 500 get back to normal levels.
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