Bespoke's Sector Snapshot (12/9/08)

After rallying 22% from its 11/20 lows, one would think that the S&P 500 would at least be trading above its 50-day moving average. However, this market was so beaten down that it has formed a new bull market and still remains closer to oversold levels than overbought levels.

Below we highlight our trading range charts of the S&P 500 and its ten sectors. The light blue shading represents one standard deviation above and below the 50-day moving average. The red and green areas represent between one and two standard deviations above and below the 50-days, and moves outside of them are considered extremely overbought or oversold.

For the first time in awhile, no sectors are oversold at the moment. And while the S&P 500 as a whole isn't above its 50-day moving average, the consumer discretionary and telecom sectors have managed to trade above their 50-days. The telecom sector is actually trading in overbought territory. Imagine that.

Comments

[sr9web:]

good post - thanks!

2008 Dec 09 01:31 PM