Performance During the Pullback

We recently broke the S&P 500 into deciles (10 groups of 50 stocks) based on stock performance during the last rally (3/9-6/12) to see what impact it has had on performance during the pullback. The market is down more than 7% since June 12th, but the 50 stocks that were up the most during the last rally are down an average of 15.1%. The 50 stocks that were up the least during the rally are only down 2.1%. Investors have clearly been selling or shorting the big winners and moving into more defensive sectors.