After a sharp rally in Homebuilders and Financial stocks, many of them are now trading well above their 50-day moving averages. As shown below, IMB, PHM, BPOP, ETFC, WM, DHI, RYL and KBH are all trading more than 25% above their 50-day moving averages. These stocks have had bounces off of their bottoms of more than 30% in a very short time period. While they are currently trading well above their 50-days, they still have a long, long way to go to get back to their normal trading ranges over the past 2 years.
Technology stocks litter the list of Russell 1,000 stocks furthest below their 50-day moving averages. Key names like AAPL, GOOG, GRMN and FSLR that used to be on the most overbought list are now more than 15% below their 50-days. Since the start of the year, there has been a clear shift in the direction of the momentum stocks from the past couple of years.
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