Below is a look at our one-year trading range charts for ten S&P 500 sectors (the Real Estate sector is excluded). In each chart, the white line represents the 50-day moving average, while the light blue shading represents each sector’s “normal” trading range. This range is calculated as one standard deviation above and below the 50-DMA.
Moves into or above the red zone are considered overbought, while moves into or below the green zone are considered oversold.
For some of the charts, we’ve drawn trend lines where applicable. Note that Consumer Discretionary has now broken above the top of its downtrend channel. Consumer Staples, on the other hand, remains in a steep downtrend.
The Energy sector has moved up into extreme overbought territory, while Financials is just breaking back above its 50-DMA. The Health Care sector hasn’t bounced nearly as much as some other cyclical sectors, and Industrials is still flirting with its 50-DMA and the top of its downtrend channel.
Technology is the one sector that has managed to make a series of higher lows since its first correction low back in February. At this point Tech is approaching new all-time highs again!