U.S. Sector Trend Following Matrix Shows Improving Participation in the Uptrend
We've seen notable improvement in the breadth of stocks participating in the uptrend across multiple time frames.
In the U.S. Sector Trend Following Matrix below we highlight the percentage of stocks above their 5, 20, 50, 100, 150, and 200 day moving averages of the S&P 500 index and a breakdown of each of its sectors. 85% of the stocks in the S&P 500 are trending above their 20 day average.
A few sector observations:
Energy and Utilities have been the weakest sectors the last 200 days, but have recovered the last 5 - 20 days.
Every long term trends begins with a short term trend, but not every short term trend continues into a long term trend.
The cyclical sectors Industrials, Consumer Discretionary, and Information Technology has been the leaders by a wide margin in all periods over the last 200 days.
Communication Services was the biggest laggard in 2022 but is recovering in 2023.
Past performance is never a guarantee of future results.
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