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The chart to the right summarizes where the S&P 500 and each of the ten sectors are trading relative to their normal trading ranges. For each sector, the circle represents where the sector is currently trading while the tail represents where the sector was trading one week ago. When the circle is in the pink or red area it is considered overbought, while the green areas indicate oversold levels.

It sounds hard to believe, but even after the best three day stretch (3.1%) for the S&P 500 since March 21, the index and half of its ten sectors are all still below their 50-day moving averages. One of the more encouraging aspects of the recent gains is that some of the sectors (Consumer Discretionary and Materials) leading it are cyclical in nature. This is in contrast to prior rallies since the May highs where market gains were primarily driven by defensive sectors.

Source: S&P 500 Sectors Price vs. Trading Range