Last week we noted that the percentage of stocks trading above their 50-days in the S&P 500 had reached 94% -- its most overbought level since at least 2006. As shown below, this reading has dipped down to 79% after the last two days of trading. Even at 79%, the percentage of stocks above their 50-days remains elevated, so breadth has not gotten hit too hard this week.
Utilities, Financials, Materials, Industrials, Energy and Consumer Discretionary all still have more than 80% of their stocks above their 50-days. Health Care, Telecom and Consumer Staples currently have the weakest breadth readings.
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