Below we highlight our trading range charts for the ten S&P 500 sectors. The white line in each chart is the sector's 50-day moving average. The top and bottom of the light blue shading represents one standard deviation above and below the sector's 50-day moving average.
Once the price moves into either the red or green area, the sector is considered overbought or oversold. A move above the red area or below the green area represents an extreme overbought or oversold scenario and there is a strong likelihood that a short-term reversal is in the cards.
After bouncing off of extreme oversold readings last week, most sectors remain oversold, but not by much. Health Care is in overbought territory, while Consumer Staples and Utilities have now moved above the red zone.