Energy Stocks Showing Breadth In Their Comeback
Energy Now Leading the Way on Breadth
[BigTrends.com note: The scope of the rebound in the Energy sector is impressive, given that many analysts were saying the drop in Oil prices would cause certain/many companies in the broad sector as a whole to be hurt (some severely). Also keep in mind that the bounceback in the group is right around key 'make-or-break' junctures, meaning a continued strong rebound is no guarantee from here.]
The S&P 500 (SPX) (SPY) is sitting nicely above its 50-day moving average, but it's still struggling to test and take out its all-time highs that were reached on March 2nd. One sector that has really seen breadth explode higher is Energy (XLE), which up until recently was a cellar dweller. As shown in the chart below, 90.2% of stocks in the Energy sector are currently trading above their 50-days. This is nearly ten percentage points higher than the next strongest sector, which is Health Care (XLV) at 81.1%. Consumer Discretionary *(XLY) and Consumer Staples (XLP) are the two other sectors with breadth readings that are better than average.
Technology (XLK) has been taking a breather lately. While some individual stocks have exploded higher recently, breadth for the entire sector is weaker than average. Just 53.7% of Tech stocks are above their 50-days. This isn't a bad reading, but it's not leading the market like momentum investors want to see.
Stocks Above 50 Day Moving Average By Sector
Courtesy of bespokeinvest.com