Every Major Telecom Is Above Average

Among the best gainers on Tuesday were telecom companies, with many of them up 2% or more. Most telecom funds are now up 20% or more from their lows.

That performance has driven all five members of the S&P 500 Telecom sector above their short-, medium- and long-term moving averages.

This happened earlier in March but other than that it's been a couple of years since every member was in gear to this degree. Historically, that has led to some rocky returns in the short-term of a week or less, but then momentum took over.

A month later, the sector was higher 10 out of 14 times with a median return nearly triple a random return. There was one loss of more than 10% in 1996 as the surge marked the exact peak, but other than that, any shorter-term weakness was erased as buyers who missed the initial surge piled back in.