Health Care, Industrial and Information Technology Sectors Remain Resilient Thus Far

So far this year Health Care and Tech stocks are the only North American sectors that have managed to keep 80% or more of their stocks trading above their 200-day moving average. The Industrial sector has hung in there as well as the latest reading shows over 70% of the stocks are trading above their 200-day moving average. This is not the case, however, for Consumer Discretionary and Financial stocks. For the Consumer Discretionary sector, this is a noticeable change in trend from 2013 where for practically the entire year 80% or more (and in May 97% of stocks!) were trading above their 200-day moving average. Financial stocks have really taken a hit in 2014. For the first 5 months of 2013, 90% of stocks were trading above their 200-day moving average. 2014 is starting off on a much different foot as only 46% of stocks are above their 200-day moving average. Finally, contrarians take note: Telecom and Utility sectors have been washed out the most. Neither has reached the 20% level that we like to see but the downside risk in these sectors seems much lower than the others. Charts of all 10 sectors are below.