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While eight out of ten S&P 500 sectors remain below their 50-day moving averages, five sectors have more than 50% of their stocks above their 50-days, which is an indication that underlying breadth is strong. As shown below, Consumer Discretionary and Consumer Staples are the only two sector indices above their 50-days. But these two sectors along with Industrials, Materials and Health Care have more than 55% of their stocks above their 50-days. Breadth in the Materials sector is especially strong with a reading of 61%.

The worst sector of them all continues to be Utilities. As shown, the sector is 5.83% below its 50-day and exactly ZERO Utilities stocks are above their 50-days. Investors are clearly dumping these low growth, high yielding names as tax hikes loom.

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Source: Underlying Breadth Strong