The massive declines over the past few weeks have left conditions extremely oversold. As we highlighted in yesterday’s Sector Snapshot, breadth has been awful while there is no longer a single stock in the S&P 500 that is overbought (1 or more standard deviations above its 50-DMA). In fact, after yesterday’s absolute washout, there is only a small handful of stocks that are above their 50 and 200-DMAs. In regards to the 50-DMA, less than 1% of stocks in the S&P 500 are above this average which is the first time that has happened since 2011. The only time in between that saw a similarly weak reading, although not quite hitting that under 1% requirement was back in December of 2018 when 1.19% of stocks were above their 50-DMA. As for the 200-DMA, only 5.59% are above that level. That is the lowest reading since March of 2009.
The average stock is now 26.56% below its 50-day and 24.5% below its 200-day. The table below shows those 22 remaining stocks that are still above their 200-DMAs as of yesterday’s close and the few that are also below their 50-DMA. Of these, only Regeneron (REGN), Kroger (KR), Digital Realty Trust (DLR), and Gilead Sciences (GILD) are also above their 50-DMAs. The only other stock in the index that is also above its 50-DMA is Cabot Oil and Gas (COG), though it is 11% below its 200-DMA. While these stocks have all held above their long term moving average recently, only GILD and REGN have risen since the index’s high on 2/19. Start a two-week free trial to Bespoke Institutional to access Daily Sector Snapshot and much more.