Energy Sector Takes a Hit

Even the Energy sector has now turned negative.  As shown in the charts below, the sector is now trading well below the bottom of its trading range, and only 5% of the stocks in it are trading above their 50-day moving averages.

click to enlarge

So where has the rotation occurred?  Healthcare.  As shown, 46% of the stocks in the Healthcare sector are now above their 50-days, and the number is increasing.  Unfortunately, the Energy sector now makes up a much larger slice of the market than it used to, so it might be wishful thinking for those who think a big decline in oil will cause the market to go up.   

Comments

[CLH]

It depends on the reason for oil going down. If its because of a recession coming, then the market will continue to go down. However, if its because oil is over priced (which I believe) then the market will soar. A huge amount of money will be put in everyones pocket (much better then the gov giving us our own money).

[VSD]

In a bear market, all sectors have to go down. Energy was a outlier and now is turning mainstream.

[jjason]

please stop pumping SOL.