Market breadth is flashing warning signs.
Only 25% of $SPX stocks now trade above their 50-day moving average — lowest since early April. That's a sharp drop from 70% in mid-August.
Meanwhile, just 47% sit above their 200-day MA, also matching April lows.
New 52-week lows have outnumbered new highs on the NYSE for 10 straight days — and in 14 of the last 15 sessions.
This isn't a healthy pullback. It's a broad erosion beneath the surface. When fewer stocks participate in a rally, the market becomes fragile. Right now, we're seeing the opposite of a rally — we're seeing distribution.
If you're holding positions, pay attention to what's working and what's not. Breadth matters more than headlines.
Only 25% of $SPX stocks now trade above their 50-day moving average — lowest since early April. That's a sharp drop from 70% in mid-August.
Meanwhile, just 47% sit above their 200-day MA, also matching April lows.
New 52-week lows have outnumbered new highs on the NYSE for 10 straight days — and in 14 of the last 15 sessions.
This isn't a healthy pullback. It's a broad erosion beneath the surface. When fewer stocks participate in a rally, the market becomes fragile. Right now, we're seeing the opposite of a rally — we're seeing distribution.
If you're holding positions, pay attention to what's working and what's not. Breadth matters more than headlines.
