Another round of extreme selling today has pushed the S&P 500 and seven of ten sectors into oversold territory at this point. As shown below, three of the ten sectors are at extreme oversold levels -- Consumer Discretionary, Consumer Staples and Energy. As of mid-day, the Technology and Utilities sectors are the only ones still above their 50-day moving averages, but Tech is dangerously close to breaking below. It's ugly out there, plain and simple.
The pullback over the last three days has left just 33% of S&P 500 stocks above their 50-days. As shown in the chart below, this is right near levels where we have seen a bounce over the last year. If this doesn't hold, we'll be at levels not seen since 2012.