Below we highlight our trading range charts of the S&P 500 and its ten sectors. The red area represents between one and two standard deviations above the sector's 50-day moving average. When the price moves into or above the red zone, it is considered overbought. After suffering through a nasty downtrend where the price rarely made it out of oversold territory, the S&P 500 and most sectors are now overbought. Technology, Energy, Materials and Utilities are the most overbought, while Financials, Consumer Discretionary, Consumer Staples and Health Care are the least overbought. Energy and Materials have pulled back in recent days, but still have a ways to go before they get back into the neutral zone.
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