The S&P 500 has moved well into negative territory on the year now with a decline of 4.8%. As shown below, Technology and Consumer Discretionary — two sectors that were up double-digit percentage points YTD just a couple months ago — have now crossed into negative territory on the year as well. The only two sectors still in the green on the year are Health Care and Utilities, while five sectors are down double-digit percentage points. Materials are down the most with a huge drop of 17.2%, followed by Energy at -16.1%. Communication Services, Financials, and Industrials are the other three sectors down 13%+. For more in-depth market analysis, try out one of our three premium research offerings.
Below is a chart showing the percentage of stocks in the S&P 500 trading above their 50-day moving averages (DMA). While the S&P closed at a new 52-week low yesterday, this breadth reading hasn’t quite broken below the lows it saw back in October. For now, breadth using this measure has a slight positive divergence.
Looking at S&P 500 sectors, it’s not a pretty picture for cyclicals. Five sectors have less than 10% of their stocks above their 50-day moving averages, with Energy’s reading at 0%. The Industrials sector ranks second worst with just 3% of stocks above their 50-DMAs, followed by Materials at 4%. Technology’s reading of 14% is just a bit weaker than the reading of 15% for the broad S&P 500.
Utilities is the only sector with a strong reading at the moment with 69% of stocks above their 50-DMAs. The second best sector — Real Estate — has just 41% of its stocks above their 50-DMAs.