The S&P 500 is sitting nicely above its 50-day moving average, but it’s still struggling to test and take out its all-time highs that were reached on March 2nd.  One sector that has really seen breadth explode higher is Energy, which up until recently was a cellar dweller.  As shown in the chart below, 90.2% of stocks in the Energy sector are currently trading above their 50-days.  This is nearly ten percentage points higher than the next strongest sector, which is Health Care at 81.1%.  Consumer Discretionary and Consumer Staples are the two other sectors with breadth readings that are better than average.

Technology has been taking a breather lately.  While some individual stocks have exploded higher recently, breadth for the entire sector is weaker than average.  Just 53.7% of Tech stocks are above their 50-days.  This isn’t a bad reading, but it’s not leading the market like momentum investors want to see.

Looking for more sector analysis?  Check out our weekly Sector Snapshot, which gets published on Thursday afternoons.  Sign up for a 5-day free trial to any of our subscription services to see this week’s Snapshot, which is due out shortly.


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