As you observe the chart below, you can definitely see the correction is in process. You can also see the percentage of stocks that are trading above their 50-day moving average dropped under that 35% level that often produces rallies. But taking a cue from our Psychology Composite still at the P5 ranking, we believe that meaningful bullish advances may have to wait a little longer before being reinitiated.
Furthermore, you can see in the tables below that this correction is also being differently impacted based on market cap considereations. The only two sectors that seem to be giving the same message are Financials on the stronger side and Energy on the weak side.
Relative action in sectors often shows corrections and rallies far in advance of the popular indices, and we continue to keep a close watch as we look for any further signs.
If you are a subscriber to HaysAdvisory.com, click here to read today's Weekly Sector Report. If you would like to learn more about the research and commentary offered by Hays Advisory, click here.
Please see important disclosures at the bottom of this page.