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Friday
Jan042013

S&P 500 % of Stocks Above 50-Day Moving Averages

While the S&P 500 still hasn't taken out its 2012 highs, the percentage of stocks in the index that are trading above their 50-day moving averages has hit its highest level since October 2011.  As shown below, 88% of stocks in the S&P are currently above their 50-days.  The last time this breadth reading was this high was back on October 28th, 2011 when it got up to 94%.  At this level, we usually see the market at least take a breather before making another big move higher.

Four of the ten S&P 500 sectors currently have more than 90% of their stocks above their 50-days.  The Industrials sector has the strongest breadth at 97%, followed by Financials (96%), Materials (93%) and Technology (91%).  The Technology sector is still multiple percentage points below its 2012 highs, but in terms of breadth, it's right up there with the strongest sectors.  Apple's (AAPL) huge weighting in the Tech sector and its significant weakness in Q4 continues to be the culprit.  While Apple struggles, the rest of Tech continues to surge.

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