80% Of Stock Above The 50 Day SMA. Time For A Deeper Market Correction.

The percentage of stocks above their 50 day simple moving averages in the S&P 500 now stands at 80 percent. In the latest rally, the reading had gotten to as high as 93 percent.

Source: Bespoke Investment Group

Of the ten S&P 500 Index sectors, the Industrials has the highest percentage of stocks above their 50-days at 95 percent, while Health Care has the lowest reading of all sectors at 52%.

We are still at a relatively high reading and the market needs a healthy correction.

Related ETF`s: SPDR S&P 500 ETF (Public, NYSE:SPY), ProShares UltraShort S&P500 (ETF) (Public, NYSE:SDS), Financial Select Sector SPDR (ETF) (Public, NYSE:XLF), Health Care SPDR (ETF) (Public, NYSE:XLV), Energy Select Sector SPDR (ETF) (Public, NYSE:XLE)