Chart of the Day - Thursday, February 2nd, 2023

Today’s Chart of the Day was shared by Rob Anderson of Ned Davis Research (@_rob_anderson). Sector breadth has made a notable improvement over the past four months. Rob points out that 10 of the 11 sectors are currently above their 200-day moving averages, with the Utilities sector being the odd man out. Sector breadth was completely washed out at the end of September with zero of the 11 sectors above their 200-day moving averages. The vertical lines mark all of the instances over the past five decades where sector breadth went from 0 to 10 like this. It's a fairly rare occurrence, with only 14 prior instances, but it has generally marked a good buying opportunity for the S&P 500. This is yet another signal to add to the growing list of bullish improvements.