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Tuesday
Feb042014

Extreme Oversold

Last week we noted when the S&P 500 initially moved into oversold territory for the first time in months.  After another huge sell-off yesterday, things have only gotten more oversold, and the S&P 500 hasn't been this far below its 50-day (2.7 standard deviations) since the week after the November 2012 elections.

Three of ten sectors are more than three standard deviations below their 50-day moving averages, which means they're literally "falling off the page" of our regularly updated trading range screen.  The lucky three are Consumer Discretionary, Consumer Staples and Energy.  Telecom is 2.97 standard deviations below its 50-day, so it's close to falling off the page as well.  Just one sector remains above its 50-day moving average after yesterday's sell-off, and it's the most defensive sector out there -- Utilities.

Is anyone out there that was hoping for a pullback jumping back in yet?  It doesn't seem like it based on sentiment.