After a rough day yesterday, defensive sectors continue to get sold off this morning. Â Below is a snapshot of where the ten S&P 500 sectors are currently trading within their normal trading ranges. Â In the table, the black vertical line represents the sector's 50-day moving average. Â The white zone represents between one standard deviation above and below the 50-day, and moves into the red or green zone are considered overbought or oversold. Â As shown, Utilities and Telecom are now well into oversold territory, while Consumer Staples is quickly approaching its 50-day moving average. Â Health Care has also now moved out of overbought territory into the neutral zone.
Investors typically move into more defensive sectors if they think the market is due for a pullback. Â If you have done that recently, it has done anything but pay off.
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