Heading into today, 82% of stocks in the S&P 500 were trading above their 50-day moving averages. That’s a very strong number, and it’s actually the first time all year that the reading has been above 80%! Streaks of weak breadth like we’ve just experienced don’t occur often. Since 1990, there have only been ten prior periods where less than 80% of stocks traded above their 50-days for six months or longer. Earlier today we sent Premium and Institutional subscribers a report looking at these streaks and how the market performs when they’re broken. Subscribers can view it here, and if you’re not yet a member, you can start a free trial today.
While 82% of stocks in the S&P 500 are above their 50-days, nearly 20% are trading more than 10% above their 50-days! You don’t see that very often either. Below is a list of stocks in the index trading the farthest above their 50-days. For each one, we highlight its distance above its 50-day, its short interest as a percentage of float (SIPF), and its percent change since the 8/25 S&P 500 closing low. For the names below, we’d recommend waiting for a pullback before getting long! Some will certainly go up even more, but eventually “mean reversion” comes into play.