Percent of Stocks Above Their 50-Day Moving Average by Sector, Utilities Lead

Dec.11.07 | About: SPDR S&P (SPY)

In our weekly Sector Snapshot available to Bespoke Premium subscribers, one of the indicators we analyze is the percentage of stocks above and below their 50-day moving averages. This data is a good breadth indicator that highlights underlying strength of an index or sector. As shown in the first chart below, currently 52% of stocks in the S&P 500 are above their 50-day moving averages. This means market internals for the index as a whole have moved back to the plus side. Another positive is that the indicator made a "higher low" during the most recent market correction versus the August declines.

On a sector basis, Utilities currently have the most stocks above their 50-day moving averages (94%). Industrials and Consumer Staples also have positive market internals, with 71% and 74% of stocks above their 50-days respectively. One surprising note is that the Technology sector only has 31% of stocks above their 50-days. This is lower than the struggling Consumer Discretionary sector and the Financials, which is a negative for Tech.