As part of our library of charts designed to gauge the internal health of the markets, we look at price dispersion or, in this case, the percent of issues in a given group of stocks that are down more than 20% from their respective 50-, 100-, and 200-day highs. We find that, excepting the energy sector, most of the developed markets continue to recover from their late summer slump. The majority of the developed market groups follow a fairly consistent pattern with ~30% down more than 20% from 200-day highs, ~20% down more than 20% from their 100-day highs, and ~10% of them down more than 20% from their 50-day highs. The consumer staples sector remained the most resilient during the correction.
Conversely, in emerging markets, around 70% of all stocks are still down more than 20% from their 200-day highs, 40-50% are down more than 20% from their 100-day highs, and 10-20% are down more than 20% from their 50-day highs. Among emerging market sectors, it is notable that the percentage of health care and telecom stocks to fall more than 20% from their averages reached extremes not seen since 2008/2009 in the most recent market pullback.