U.S Market Sector Breadth

Research Notes For 19 to 24 May > https://www.unum.capital/post/r1924may

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Analyst Disclosure: The following text was generated with an A.I tool.

This sector breadth graphic displays the percentage of shares within different sectors that are trading above their 20-day moving average (MA). This is a short-term market breadth indicator used to gauge the short-term momentum and health of each sector.

Here's a summary of the data:

• CND: 100.00% - All shares in this sector are above their 20-day MA, indicating strong short-term bullish momentum.

• IND: 98.71% - A very high percentage of shares are above their 20-day MA, suggesting strong short-term bullishness.

• TEC: 98.55% - Similar to IND, this sector shows significant short-term bullish momentum with most shares above their 20-day MA.

• COM: 95.65% - The vast majority of shares are above their 20-day MA, indicating strong short-term bullish sentiment.

• FIN: 93.15% - A high percentage of shares are above their 20-day MA, showing good short-term bullishness.

• MAT: 92.30% - Like FIN, this sector has a strong percentage of shares above their 20-day MA, indicating short-term bullishness.

• TTL: 83.33% - A significant majority of shares are above their 20-day MA, suggesting short-term bullishness, although slightly less strong than the sectors above.

• REI: 77.41% - A good percentage of shares are above their 20-day MA, indicating short-term bullishness.

• ENE: 73.91% - A solid percentage of shares are above their 20-day MA, showing short-term bullishness.

• HLT: 68.33% - Over half of the shares are above their 20-day MA, indicating a somewhat weaker short-term bullishness compared to the top sectors.

• CNS: 60.52% - A little over half of the shares are above their 20-day MA, suggesting a less convincing short-term bullishness.

• UTL: 58.06% - Slightly more than half of the shares in this sector are above their 20-day MA, indicating a neutral to slightly bullish short-term outlook.

In general, a high percentage of shares above their 20-day moving average within a sector suggests strong short-term upward momentum for that sector. Readings above 70-80% can indicate overbought conditions in the short term, while readings below 30% can suggest oversold conditions.

This graphic indicates that, based on this snapshot, the CND, IND, TEC, COM, FIN, and MAT sectors are showing the strongest short-term bullish breadth, as a very high percentage of their constituent shares are trading above their 20-day moving average. The UTL and CNS sectors show the weakest short-term bullish breadth among those listed.

Lester Davids

Senior Investment Analyst: Unum Capital