The S&P 500 closed the week down nearly 6% for its worst 5-day start to a year in history going back to 1928. Below is our trading range chart of the S&P 500. The bottom of the green zone represents two standard deviations below the 50-day moving average. Right now, the S&P is more than 3.5 standard deviations below its 50-day.
Underlying breadth levels for the S&P 500’s sectors look absolutely horrid outside of Utilities and Consumer Staples. Six sectors now have less than 10% of their stocks trading above their 50-days, while Financials and Consumer Discretionary are just barely above 10%. 0% is as low as this reading can go, and we’re just about there for at least half of the market.
Two of ten sectors have now broken below their August closing lows, meaning they’re now “supportless”. These two sectors are Energy and Financials. The other eight sectors don’t look much better, though, as you’ll see below.