Market breadth is deteriorating fast. Over 51% of $SPX stocks now sitting below their 200-day moving average—worst we've seen since early April.
This isn't just a headline number dip. When more than half the market is underwater on a longer-term basis, it tells you the rally has been narrow and fragile. The mega-caps might be holding up the index, but underneath? A lot of damage.
April was when we had that mini panic around banking stress and rate uncertainty. We bounced back then, but breadth never fully healed. Now we're back at that level of weakness.
Watch for divergences. If the index keeps grinding higher while breadth keeps weakening, that's a classic late-cycle warning sign. If breadth starts improving, maybe we get some relief. Right now, it's a yellow flag worth paying attention to.
This isn't just a headline number dip. When more than half the market is underwater on a longer-term basis, it tells you the rally has been narrow and fragile. The mega-caps might be holding up the index, but underneath? A lot of damage.
April was when we had that mini panic around banking stress and rate uncertainty. We bounced back then, but breadth never fully healed. Now we're back at that level of weakness.
Watch for divergences. If the index keeps grinding higher while breadth keeps weakening, that's a classic late-cycle warning sign. If breadth starts improving, maybe we get some relief. Right now, it's a yellow flag worth paying attention to.
