With yet another positive vaccine-related headline pushing the market higher today, Industrials and Materials are both touching new 52 week highs. As for the other sectors, only Consumer Staples and Health Care alongside the broader S&P 500 have made new highs at some point in the month of November. At the moment, those same sectors as well as Tech, Consumer Discretionary, and Communication Services are all within 5 percentage points or less of their respective 52-week highs.
In terms of breadth, though, new highs have been easier to come by. As shown in the charts below, across the eleven sectors as well as the broader S&P 500, breadth has been generally confirming a move higher as only the cumulative A/D lines of Real Estate and Energy have not seen a new high within the past two weeks. Some of those new highs in breadth have also been a contrary story to price. With regards to Consumer Discretionary and Tech, prices have seen some lower highs over the past few months, but their advance-decline lines have been diverging from price and have continued to trend higher. Similarly, breadth in the Communication Services sector has continued to rip higher, unlike price which has stalled within the past couple of weeks.
Lastly, sectors making new highs in terms of price like Industrials and Materials have seen breadth do the same in recent days. Broadly speaking, the direction of breadth has been consistent with recent price moves, and even for the areas where that is not necessarily the case (as with Tech), the strong breadth can be taken as a positive for internals. Click here to view Bespoke’s premium membership options for our best research available.