Last Wednesday we asked whether or notĀ the initial pullback in market breadth would turn into something more.Ā As shown in the chart of the percentage of S&P 500 stocks trading above their 50-day moving averages, theĀ initial pullback has turned into a pretty significant rollover so far.Ā The movement in the indicator over the last month or so looks eerily similar to its movement in the Spring (highlighted in gray).Ā Long investors are hoping the similarities come to an end very soon.
The Energy sectorĀ got hit hard along with everything else today, but it still has the strongest breadth of all ten S&P 500 sectors.Ā Ninety percent of stocks in the Energy sector remain above their 50-day moving averages.Ā The Utilities sector is a different story.Ā Just 24% of stocks in this sector are above their 50-days.Ā The Financial sector is the only other one with less than 50% of stocks trading above their 50-days.
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