Breadth Remains Weak

In the S&P 500, 60% of stocks are trading above their 50-day moving averages. As shown in the first chart below, this indicator has made a series of lower highs in recent months, even as the S&P 500 has made subsequent new highs over this time period. This means that less and less stocks have been helping the index move higher, and it's definitely something that favors the bearish argument.

The Financial sector currently has the lowest percentage of stocks above their 50-day moving averages at 45%. It's also the only sector with a reading below 50%. Consumer Staples, Health Care and Industrials currently have the highest percentage of stocks above their 50-days.