Yesterday afternoon we highlighted the performance of the S&P 500 and its ten sectors off of the morning highs they put in. With the market taking another leg lower today, below is an updated look at the chart. The green bars represent the one-day change for sectors at their highs yesterday, while the red bars show how much they have declined from those highs. As shown, Materials has been the clear loser with a decline of 3.84%, especially since the sector was up just 0.72% at its highs yesterday. The Financial sector has really taken it on the chin as well over the last two days, falling 3.65% from its highs. The S&P 500 as a whole is now down 3.14% from yesterday's highs, and defensive sectors like Utilities, Consumer Staples and Telecom have held up the best during this pullback.
The two-day move for the S&P 500 has left it nearly two standard deviations below its 50-day moving average, which is an extreme oversold reading that hasn't been seen since the mid-October ebola scare. Five of ten sectors are also now oversold, with Financials at the most extreme levels, and Industrials and Materials not far behind.
Three sectors remain above their 50-days: Consumer Staples, Health Care and Utilities. The outperformance that we saw from Utilities in 2014 looks to be carrying over into 2015.