As equities bounce back today, a number of stocks are back up to 52-week highs intraday. As shown in the chart below, the reading on net new highs (percentage of stocks reaching new 52-week highs today minus the percentage reaching new 52-lows) for the S&P 500 is up to 16.8% which is on pace to be the highest level since January 12th. Over the past year, including today there have only been six days that the S&P 500 saw a stronger reading in net new highs.
Looking across each of the eleven sectors, traditionally cyclical ones have stood out. Sectors that have been the best performers in the past week like Energy, Financials, Industrials, and Materials are also leading in new highs. The most impressive reading of these has been Energy. Over 34% of its stocks reached 52-week highs today which is the strongest reading since 5/17/18. While that is partially a result of big gains in these stocks recently, the higher number of new 52-week highs also has to do with higher prices of these stocks from prior to the COVID crash finally falling further into the rearview. For instance, as shown in the second set of charts below, even after its huge gains since the lows just over a year ago, the Energy sector still sits well below levels from prior to 2020. As for the other sectors, they not only have strong readings in net 52-week highs but also are making new highs in terms of price. Next to Energy, the reading for the Financials sector is the most notable at 38.46%; the highest since December 2019. While not at multi-year highs, Industrials and Materials have also seen some of the strongest readings in the number of new highs of the past year. AT 39.29%, Materials has the strongest reading of all sectors. Click here to view Bespoke’s premium membership options for our best research available.