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Utility uptrends vastly outnumber tech's

by Sentimentrader
2026-07-27
A rare 65% breadth gap has opened between utility and tech stocks, occurring fewer than 30 times in 30 years. While historically bullish, the S&P 500 falling below its 50-day moving average signals rising short-term risk

Key points

  • Over 95% of utility stocks are currently trading above their 50-day moving averages, while less than 30% of technology stocks trade above their 50-day moving averages.
  • This extreme spread-a gap of more than 65% between utility and tech stock participation-has occurred fewer than 30 times over the past 30 years.
  • It has not been a particularly worrisome sign for the broader market, though longer-term mean reversion in the utility-tech spread has historically occurred.

Utility uptrends vastly outnumber tech's

Defensive stocks earn their name by serving as semi-safe havens during periods of economic distress. Regardless of the broader macroeconomic environment, consumers still need to power their homes, attend to basic healthcare, and purchase groceries. Consequently, sectors like utilities, health care, and consumer staples frequently provide a structural buffer against losses during extended market downturns.

In stark contrast, the technology sector-which was operating in full swing last quarter-has recently become sluggish. As of last week, over 95% of utility stocks were trading above their 50-day moving averages.

Utility uptrends vastly outnumber tech's

Around the same time, less than 30% of technology stocks were trading above the

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