S&P 500 Breadth Levels Turn Positive

As shown in the first chart below, 54% of stocks in the S&P 500 are now trading above their 50-day moving averages. Much like the index itself, many stocks within the index have now broken above this key resistance level.

Telecom and Consumer Discretionary are the two sectors with the highest percentage of stocks trading above their 50-days, while Consumer Staples has the smallest.

It's good to see this breadth measure turn positive again for the market, and it has a ways to go on the upside before it gets overbought.

Comments

[John Lounsbury:]

On a technical perspective, things look generally at resistance in these charts. Follow-through to clearly break resistance is important.

2008 Dec 17 10:18 PM

[investor88:]

Good article. fairly bullish. follow the trend.

2008 Dec 18 09:20 AM

[specks:]

This is meaningless.
You need the October 'peek' to give any real perspective to this move to the former 'peak'.

2008 Dec 18 11:13 AM