Heading into today, the percentage of stocks in the S&P 500 trading above their 50-days took a major turn for the worse. After trading above the 50% level for a few months, this breadth indicator dropped all the way down to 39%. And the drop was even worse for certain sectors. In the Energy sector, just 13% of stocks are above their 50-days after being near 100% just a couple of weeks ago. Industrials dropped down to 21%, Consumer Discretionary dropped to 23%, and Financials, Materials, and Telecom dropped to the low 30s. Consumer Staples, Health Care, and Utilities (all defensives) are the only sectors with a breadth reading above 50%. Talk about a quick pullback.
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