A positive start to the trading day, and boy do we need it. We are in some very rare oversold territory. Consider:
1) The S&P 500 has dropped five days in a row. It's the first five-day losing streak since January, but before that, the last five-day losing streak was December 2013;
2) The S&P 500 materials sector is down nine days in a row, which hasn't happened since May 2012;
3) The NYSE Advance/Decline line has declined seven days in a row, an equally rare event. The NYSE Composite Index has also been down seven days in a row.
4) There were 467 new lows on the NYSE, or nearly one in five of the stocks, a very high number.
Even though the S&P 500 is only 3 percent from its recent high, this decline in the Advance/Decline line indicates the leadership is becoming much more selective.