With the stock market's vigorous bounce during the latter portion of the week, the technical strength of the S&P 500 sectors that I follow has improved significantly. The data below are taken from eight different sectors, summarizing the short-term technical strength (a quantified measure of trending behavior) of five highly weighted stocks within each sector.
CONSUMER DISCRETIONARY: +240
CONSUMER STAPLES: -60
HEALTH CARE: +180
What is clear is the massive sector rotation that has occurred in recent days. Energy stocks are now solidly in downtrends, while the former leaders to the downside--financial and consumer discretionary issues--have turned around significantly.
Here are the percentage of stocks within each sector currently trading above their 50-day moving averages, providing us with a longer-term perspective on relative strength. Once again we can see the surprising weakness of the energy stocks:
CONSUMER DISCRETIONARY: 23%
CONSUMER STAPLES: 39%
HEALTH CARE: 58%