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.
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