Below we highlight our trading range charts for the S&P 500 and its ten sectors. For each chart, the blue shading represents the sector's "normal" trading range, which is between one standard deviation above and below its 50-day moving average. The red shading is between one and two standard deviations above the 50-day, and vice versa for the green shading. Moves into or above the red zone are considered overbought, while moves into or below the green zone are considered oversold.
As shown, even after rallying nearly 4% off of the recent lows, the S&P 500 remains right at the bottom of its normal trading range. To get back to overbought territory, the index needs to gain roughly 6%, which would put it right near the 1,400 level.
Cyclical sectors like Financials, Technology, Energy, Industrials and Consumer Discretionary all look similar to the S&P 500 as a whole right now. All have moved out of extreme oversold territory and now sit at the bottom of their normal trading ranges. Three sectors are currently above their 50-day moving averages, and they're all non-cyclical -- Consumer Staples, Telecom and Utilities. Both Telecom and Utilities are now in extreme overbought territory and should be due for at least some sideways to down trading in the near term.