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US futures have been gradually drifting higher all morning and are now indicating a gain of nearly 1% for the S&P 500 at the open. In terms of data today, there isn’t much on the economic front, so the primary focus of investors is going to be on trends in COVID-19 case counts both here in the US and abroad.
Read today’s Bespoke Morning Lineup for a discussion of the latest trends and statistics of the outbreak, trading in European markets, and the latest on the political back and forth between EU member countries on how to deal with virus relief.
In yesterday’s post, we noted that Financials was the only S&P 500 sector still trading at oversold levels. Even with yesterday’s negative reversal in the S&P 500, the Financials managed to finish slightly in the green and more importantly, out of oversold territory. With that move, it was the first time in 51 trading days that at least one S&P 500 sector was not in oversold territory. That may sound like a long time, but it is nowhere near a record. In late 2016, the S&P 500 went 74 straight days where at least one sector was oversold, and there have been multiple periods in the past when there were streaks of 100 or more trading days with at least one sector oversold. That was before the days of ETFs where the market was a lot less one-sided on a day to day basis.
What is rather unique about the recent period is that back in late March, there was a 13 trading day stretch where every S&P 500 sector finished the day at oversold levels. Going back to 1990, there has only been one other longer streak. That was in October 2008 when every sector was at oversold levels for a full 17 straight trading days.