54% of stocks in the S&P 500 are currently trading above their 50-day moving averages. This indicator has been in a downtrend since peaking in February when breadth exploded higher.
Below we show similar breadth readings by S&P 500 sector. Utilities, Consumer Staples, Health Care, and Materials currently have the strongest readings (all above 60%), while Energy is currently the weakest sector with just 10% of its stocks above their 50-day moving average.
The ever-important Technology sector currently has a reading of 50%, which means exactly half of the sector’s stocks are above their 50-DMAs. It doesn’t get more neutral than that!
Given its massive weighting, whichever direction Tech breaks in the coming days will likely set the near-term trend for the overall market. Start a two-week FREE TRIAL to Bespoke Premium to read our weekly Sector Snapshot report every Thursday.