For those interested, below we provide our trading range charts for the ten S&P 500 sectors. In each chart, the blue shading represents between one standard deviation above and below the 50-day moving average. This is considered the sector's normal trading range. The red shading represents between one and two standard deviations above the 50-day, while the green shading represents between one and two standard deviations below the 50-day. Moves into or above the red zone are considere overbought, while moves into or below the green zone are considered oversold.
The recent pullback pushed all but four sectors out of overbought territory and into neutral territory. Technology, Consumer Discretionary, Consumer Staples and Telecom are the four sectors that remain above their normal trading ranges, although they're much less overbought than they were just a few days ago. Industrials and Materials appear to have rolled over the most during this pullback, and both are now below their 50-days. Financials and Energy also took hits, but they've managed to hold above support at their 50-days.
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