Breadth Weakens Considerably

As shown in our prior post, the S&P 500 has moved back into its trading range after declining roughly 4% from its bull market closing high reached just last week.  The S&P 500 broke right through its 50-day moving average today as well, and as shown below, just 30% of the stocks in the index are now above their 50-days.  This is the weakest breadth reading we've seen since last November when the S&P 500 experienced a similar decline.  The index now has quite a bit of work to do to just get back to neutral territory (around 50%) in terms of stocks trading above their 50-days.

Seven sectors are now below their 50-days, with Energy, Industrials, Materials and Utilities the farthest below.  Consumer Staples, Health Care and Technology are the only sectors that are still above their 50-days.