One of the breadth indicators that we follow is the percentage of stocks in an index or sector that are above their 50-day moving averages. By this measure, the S&P 500 is oversold with just 19% of stocks above their 50-day's. There are two sectors that currently have extreme oversold breadth readings -- Technology and Consumer Discretionary. Just 6% of stocks in the Technology sector are above their 50-day moving averages, while there are just 3% above in the Consumer Discretionary sector. While this may not be good for their long-term outlooks, the sectors are due for a bounce in the short term. http://bespokeinvest.typepad.com/bespoke/2008/01/oversold-sector.html