Market Breadth Back to Lows

Below we highlight the percentage of stocks above their 50-day moving averages for the S&P 500 and its ten sectors.  Currently, just 17% of stocks in the S&P 500 are above their 50-days, which is just about as low as breadth has been during the prior lows seen back in August, January and March. 

Eleven percent of Industrials and Materials stocks, 8% of Consumer Discretionary stocks, and just 3% of Financial stocks are above their 50-days.  Those looking to sell, sell, sell this market may want to wait for these oversold levels to at least move back to neutral territory.

click to enlarge

 

Comments

[Will Rahal]

The Advancing minus Declining Volume line has also broken to new lows.
This does not bode well for the stock market, and confirms that my economic indicators pointing to a recession are valid.
Despite the tax rebate the ratio of ND/Durable Goods consumption keeps rising, allowing for less discretionary spending needed to stimulate the economy

See

wrahal.blogspot.com/20...

[adan]

nice article, thanks!