In today’s Morning Lineup, we noted that 100% of S&P 500 Industry Groups are now above their 50-DMAs. But individual stocks have been equally as impressive in regards to their 50-DMAs. As of yesterday’s close, 96.24% of S&P 500 stocks finished the day above their 50-DMAs. Including yesterday, there have only been five days since 1990 that has seen as strong if not stronger readings. All of those occurred in mid-February and early March of 1991. So it has been quite some time since the S&P 500 last had this many stocks trading above their 50-days.
Given the strong reading for the broader index, for the first time since March of 2016, there are four sectors with 100% of their stocks above their 50-DMAs: Communication Services, Energy, Industrials, and Materials. Consumer Discretionary is also close at 98.41%. Every other sector has at least 90% of their stocks above except for Utilities. Granted, it is by no means weak or far behind the rest of the pack with a reading of 89.29%.
The charts below from our Daily Sector Snapshot show the percentage of stocks above their 50-DMAs by sector over the last year. For the sectors with 100% of their stocks currently above their 50-DMAs, it has understandably been a while since the last time they read 100%. For Communication Services, the current string of days with 100% of stocks above their 50-DMAs has been the first since September of 2018. For Energy and Industrials, this has been the first time since February of 2019 and for the Materials sector, the last time that 100% of stocks were above their 50-days was July of last year. Start a two-week free trial to Bespoke Institutional to access our interactive economic indicators monitor and much more.