We’ve just sent out our weekly Sector Snapshot to Bespoke Premium and Bespoke Institutional members. You can sign up for either subscription offering directly at this link if you’re not yet a member and want to check it out.
Below is one chart from our Sector Snapshot that shows the S&P 500’s price within its trading range over the last year. The bottom of the green shading in the chart below represents two standard deviations below the index’s 50-day moving average. Readings this oversold are rare, and it’s even more rare for the index to close more than two standard deviations below its 50-day for eleven trading days in a row!
Just 11% of stocks in the S&P 500 are currently trading above their 50-day moving averages, which is an extremely depressed breadth level. Notably, Energy doesn’t even have the weakest reading out of the ten sectors anymore. That title belongs to Industrials with just 2% of stocks above their 50-days. As you can see in the chart below, Tech, Materials and Financials aren’t far behind either. Just 3% of Tech stocks are above their 50-days. As the largest sector of the market, Tech has been very weak recently.
If you’d like to read more and you’re not yet a subscriber, sign up for one of our subscription packages today.