In our Chart of the Day today, we analyzed the performance of the S&P 500 following big spikes higher in market breadth as measured by the percentage of stocks trading above their 50-day moving averages. Below we provide one-year charts of this breadth reading for the ten S&P 500 sectors. As you can see, all of them with the exception of Health Care are either at or right near one-year highs. And the way they’ve reversed from one-year lows to one-year highs is just remarkable.
As shown, Energy, Financials, Industrials, Materials, Telecom and Utilities all have more than 90% of stocks trading above their 50-days. Remember, 100% is as high as this reading gets, so it can’t get much better from here!