The S&P 500 is down just over 5.5% from its post bear market high set on June 8th. Just about every sector also set a high on that date with the exception of Communication Services (one day later on June 9th) and Technology who’s last high was as the most recent last Tuesday. At the time of those highs, each sector was deep in overbought territory as shown in the charts from our Daily Sector Snapshot below. But with each sector generally falling over the course of June, every sector is closing out the month in a more neutral area of their trading ranges with many hovering within a few percentage points of their 50-DMAs. At the moment, only the Technology sector remains overbought.
Most sectors are now within a few percentage points of their 50-DMAs, and that is a much more moderate reading than some observed in the past few months. As shown in the 50-DMA spread charts from our Daily Sector Snapshot below, the rally off the bear market lows saw some sectors like Energy and Industrials trade more than 20% above their 50-DMAs! For the broader S&P 500, the June 8th high also marked the most extended it got above its 50-DMA at 13.06%. Today that reading is a much more modest 2.33%.
As for the individual stocks within each sector, there has also been significant mean reversion. In the first couple of weeks of June, well over 90% of S&P 500 stocks were above their 50-DMAs. With equities broadly lower since the early month highs, only around 60% of stocks are now above their 50-DMAs. On a sector basis, Industrials have the highest share (80.8%) above while Utilities has the lowest share at only 21.43%. Click here to view Bespoke’s premium membership options for our best research available.