In a month marked by volatility, the stock market is sending out distress signals like never before. The S&P 500 and Nasdaq 100 have both hit yearly lows in terms of the percentage of stocks trading below their 50-day moving averages.
The September market downturn is spreading like wildfire across various sectors, with only a handful of stocks managing to maintain the positive trend seen in recent months.
At present, only 13% of stocks included in the SPDR S&P 500 ETF Trust SPY, or 73 companies, are trading below the respective 50-day moving average. This percentage also holds true for the Nasdaq 100, marking the lowest value since late October 2020.
Chart: Percentage Of S&P 500, Nasdaq 100 Stocks Trading Above 50-Day Moving Average
Valero Energy Corporation VLO and Amgen, Inc. AMGN stand tall as they trade approximately 7.4% above their 50-day moving averages, the highest among S&P 500 stocks.
Conversely, Dollar General Corp. DG and Insulet Corporation PODD are noticeably lagging behind their historical performances, with declines of 27% and 23%, respectively, in comparison to the 50-day average. This positions them at the lower end of these statistical findings.
Shifting focus to the Invesco QQQ Trust QQQ, the largest ETF tracking the Nasdaq 100 Index, Amgen retains its leading position, followed by Seagen Inc. SGEN, which is trading 6% above its 50-day moving average.
On the downside, Illumina, Inc. ILMN is trading by a significant 21% below the 50-day moving average, followed by Walgreens Boots Alliance Inc. WBA at a 19% negative difference.
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Energy Maintains Strong Breadth, Other Sectors Falter
Sector-wise, energy stocks have been the stars of the show, with nearly half of them holding above the key moving average. In contrast, the information technology sector is facing challenges, with only 10.8% of stocks maintaining positions above the moving average — the lowest since late October 2022.
Sectors with less than 10% of stocks trading below their moving averages include Utilities (6.7%), Consumer staples (5.3%), Industrials (5.3%), Consumer Discretionary (1.9%) and Real Estate (0.01%).
| Market/Sector | % of Stocks Above 50-Day Average |
|---|---|
| S&P 500 | 13.7 |
| Energy | 47.8 |
| Financials | 25.0 |
| Health Care | 21.2 |
| Materials | 17.2 |
| Info & Tech | 10.8 |
| Utilities | 6.7 |
| Consumer Staples | 5.3 |
| Industrials | 5.3 |
| Consumer Discretionary | 1.9 |
| Real Estate | 0.01 |
Data: TradingView
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