While the S&P 500 moved to a new all-time high on a closing basis Tuesday, we wanted to check in on breadth with respect to S&P 500 industry groups and how they’re trading relative to their 50 and 200-day moving averages. While we hear a lot about the largest five stocks in the S&P 500 accounting for the lion’s share of the gains, it’s not as if everything else in the market is falling apart.
Looking first at S&P 500 industry groups versus their 200-day moving averages (DMA), while not extraordinary by any means, more than two-thirds are currently above their 200-DMAs, and the level continues to trend higher. A more worrying sign would have been if this reading was much higher and showing signs of rolling over. The seven industry groups that are currently below their 200-DMAs are Banks, Consumer Services, Energy, Insurance, Real Estate, Telecom Services, and Utilities.
On a shorter-term basis, the percentage of industry groups currently above their 50-DMAs is considerably higher at over 95%. In other words, the only industry group not above its 50-DMA is Energy. What else is new? Now that the S&P 500 has taken out its February highs, these breadth readings will be key indicators to watch for signs of participation (or lack thereof) in any rally. Click here to view Bespoke’s premium membership options for our best research available.