As we near the end of the first quarter of 2025, the average stock in the S&P 500 has a negative return of -0.2% year to date.
Here’s the table:
Let's break down what the table shows:
Each row in the table represents the average stock within each S&P 500 sector. The first column shows the average year-to-date percentage. The second column reflects the average percentage relative to the 50-day moving average. The third column indicates the average percentage relative to the 200-day moving average. The fourth column displays the average percentage from the 52-week high, while the fifth column shows the average percentage from the all-time high.
The Takeaway: The average stock within the S&P 500 index has dropped by -0.2% year-to-date. Among the sectors, the average energy stock is performing well, showing an increase of 7.2%. In contrast, the average technology stock is struggling, down by -5.1% year-to-date.
Overall market leadership has become increasingly narrower in Q1 of 2025.
In a healthy bull market, stocks typically trade above their moving averages. There's an old saying on Wall Street: “Nothing good happens below the 200-day moving average.” Currently, the average stock in the S&P 500 is below its 200-day moving average by -1.1%. If the average stock continues to remain below the 200-day moving average, it could pose challenges for the market overall.
Even the average stock in the S&P 500 has experienced an average decline of -17.3% from its 52-week highs.
The numbers in the table above do not inspire confidence.
Do you believe that the performance numbers for Q2 will be better than those for Q1?
Grant Hawkridge | Chief Aussie Operator, All Star Charts
ICYMI: JC and Jason hosted a special event yesterday, offering insights into what's next in commodities. Catch the replay here.
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