Below we highlight historical prices and price to earnings (p/e) ratios for the ten S&P 500 sectors. The green area represents two standard deviations above and below the sectors 50-day moving average. When the price moves above or below this green area, the sector is considered overbought or oversold. As shown, Industrials, Technology, Energy and Materials are well into overbought territory at the moment, while Financials, Health Care and Utilities are trading the closest to the bottom of their areas. Looking at the historical p/e ratios (trailing 12-month), most have been tracking inline with the sector's price over the past few months. As second quarter earnings begin to come in, we'll be on the lookout for sectors where a divergence between price and p/e takes place.
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