The S&P 500 is up 6.10% year-to-date, and as shown below, seven of ten S&P 500 sectors are outperforming that mark. Telecom, Utilities and Energy are up the most at 14%+, while Materials is up 11.78%. The three underperforming sectors are Consumer Discretionary, Health Care, and Financials.
The reason the S&P 500 is up just 6% even though seven sectors are doing better than that is because the top five performing sectors this year are also the smallest five sectors in the index. Financials, Health Care and Consumer Discretionary — the three underperformers — are the 2nd through 4th largest sectors in the index.
The S&P 500 continues to trend lower within its range as we close out the week. A month and a half ago, the index was at the same level that it’s at now, but it was much more overbought. You can see this in our trading range chart of the S&P below:
As the market pulls back, breadth is losing a bit of steam. As of early afternoon, just 60% of stocks in the S&P were above their 50-day moving averages:
Below is a look at sector breadth levels. Technology currently has the strongest breadth with 81% of its stocks above their 50-days. Industrials ranks second at 78%, followed by Financials at 69% and Energy at 68%. There are zero stocks above their 50-DMAs in both the Utilities and Telecom sectors.