The S&P 500 re-took its 50-day moving average yesterday, but unfortunately it did so without more than half of its index members closing above their 50-days as well.  As shown below, only 48% of stocks in the S&P are currently above their 50-day moving averages.  Bulls would like to see a much stronger reading than that based on where the S&P is currently trading.

Below is a look at the percentage of stocks above their 50-day moving averages by sector.  As shown, five cyclical sectors have breadth readings that are weaker than the 48% reading for the broad S&P 500.  Energy is all the way down at 16%, while Industrials and Consumer Discretionary are at 40% or less.  The two sectors with the strongest breadth levels are both defensive in nature — Utilities and Consumer Staples.  We’d prefer to see the script flipped with cyclicals leading and defensives lagging.

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