As of this morning, 59.4% of stocks in the S&P 500 were trading above their 50-day moving averages. When we break up this reading by sector, you can see below that three sectors are dragging down the index severely, while the remaining seven have very healthy breadth readings. Just 13.8% of stocks in the Utilities sector are trading above their 50-day moving averages, while just 15% of Energy stocks are above their 50-days. In the Consumer Discretionary sector, 47.7% of stocks are above their 50-days. This weakness in Energy and Consumer Discretionary is ironic given that the consumer stands to benefit from lower energy prices.
The Financial sector has the strongest breadth reading with 80.2% of its stocks above their 50-days. Financials have done well any time the Fed has sounded hawkish. The sector has been stuck in a rut trading back and forth for nearly two years now, but bulls on the sector are hoping a hike in rates may finally cause the breakout they’ve been looking for.