One of the breadth measures we follow closely is the percentage of S&P 500 industry groups trading above their 50-day and 200-day moving averages. (These are two indicators we feature often for Bespoke subscribers.) As shown below, the percentage of industry groups now trading above their 200-day moving averages has dipped down to 54.2%, so it’s getting very close to the 50% reading that is often viewed as a line of demarcation of sorts for a market that’s trending higher or trending lower.
The percentage of industry groups trading above their 50-day moving averages has dipped all the way down to 16.7%, and it was actually much lower at the recent lows in early February. This speaks to the extreme near-term weakness that the market has experienced over the last month and a half.
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