The S&P 500 has seen a bread and butter bounce off of its 50-day moving average this week. Below is our trading range chart for the S&P 500 and its ten sectors. For each chart, the blue shading represents the index's "normal" trading range, which is between one standard deviation above and below its 50-day (white line). The red zone represents between one and two standard deviations above its 50-day, while the green zone represents between one and two standard deviations below its 50-day. Moves into or above the red zone are considered overbought, while moves into or below the green zone are considered oversold.
While the S&P 500 has seen a nice bounce, it's still in a nice position to continue higher before it gets too extended again.
While the S&P 500 has moved back to the top of its range, there are plenty of sectors that have yet to do so. Materials, Energy, Industrials and Technology remain below their 50-days and in short-term downtrends. Apple's (NASDAQ:AAPL) move higher after hours on earnings is a good sign for Technology, so the sector may make a push for its 50-day in the morning. Of the cyclical sectors, Financials and Consumer Discretionary have definitely held up the best recently, and both are now back to the top of their trading ranges. The four defensive sectors -- Consumer Staples, Health Care, Utilities and Telecom -- are on a different playing field, however. All four are in strong uptrends and in extreme overbought territory.