Yesterday we noted that 79.6% of the stocks in the S&P 500 were overbought. Below is another breadth measure indicating that the market is extended here as well. As shown, 90% of the stocks in the S&P 500 are currently trading above their 50-day moving averages. This is the highest reading we've seen over the last year, and it's only the sixth time we've crossed the 90% barrier since the bull market began in 2009.
Six of ten S&P 500 sectors have readings at 90% or greater as well. The Industrials sector has the highest percentage of stocks above their 50-days at 97%, followed closely by Financials at 96%. Technology, Energy, Utilities and Materials are the other four sectors with readings above 90%. Telecom and Consumer Discretionary have the lowest percentage of stocks above their 50-days at 63% and 78%, respectively.
