As shown in the first chart below, 54% of stocks in the S&P 500 are now trading above their 50-day moving averages. Much like the index itself, many stocks within the index have now broken above this key resistance level.
Telecom and Consumer Discretionary are the two sectors with the highest percentage of stocks trading above their 50-days, while Consumer Staples has the smallest.
It's good to see this breadth measure turn positive again for the market, and it has a ways to go on the upside before it gets overbought.
One other thing to note, though, is that unless that number continues to grow right here, this high is lower than the previous high, which is lower than the next previous high.. we may trade sideways for a while, but we are still in a long-term downtrend.
Posted by: Adam | December 17, 2008 at 06:23 PM