In last Friday’s Bespoke Report newsletter, we noted that while overall industry group breadth was very positive with 70% trading above their 50-day moving averages, half of the 24 industry groups were within +/- 2% of their 50-DMAs. Therefore, a moderate move for the market in either direction had the potential to really shift the reading. Less than one trading session later, we have now seen that play out. With today’s 1.5% decline in the S&P 500, the percentage of industry groups trading above their 50-DMAs has now dropped to 50%. When you consider the fact that this reading was at 96% just two weeks ago, it’s quite a shift! The last time we saw a larger shift was back in late March.
The table below lists each industry group’s YTD change and the percentage it is currently trading above or below its 50-DMA. Here again, you can see that there are a lot of industry groups still trading right around their 50-DMAs as nine are still within +/- 2%. Industries that are the furthest above their 50-DMAs are Media, Food & Staples Retail, and Real Estate, while Consumer Services, Capital Goods, Banks, and Semiconductors are now trading the furthest below.