Percentage of Stocks Above 50-Day Moving Averages

Currently, 64% of stocks in the S&P 500 are trading above their 50-day moving averages.  As shown in the chart below, the reading has been creeping higher and higher since mid-July, and looks to be on its way to the 80%-85% levels seen twice over the last year.  Readings above 50% are signs of a healthy market, and it hasn't been above 50% for much of 2008. 

From a sector perspective, all of them except for Energy and Utilities have more than 50% of stocks trading above their 50-days.  While Utilities are just under 50% at 48%, Energy is extremely weak with a reading of 5%.  Telecom and Health Care are currently the most robust sectors at 89% and 85% respectively, followed by Consumer Discretionary (77%) and Industrials (75%).

    

Comments

[Stock]

I think we are in for a major decline before things start to recover.