Despite a powerful 22% surge in the S&P 500 since the April lows—driven by easing U.S.-China trade tensions and a 90-day pause on new tariffs—only half of the index’s stocks have managed to rise above their 200-day moving average, indicating a market rally that remains potentially incomplete.
This technical indicator, often used to gauge long-term trends and market breadth, currently shows that just 49.9% of S&P 500 components are in what traders would consider a bullish trend.
That figure remains below both the five- and 10-year averages of 60%, suggesting a wide swath of the market has yet to participate in the rebound.
Breadth Gauge Shows Room To Run
Over the past four years, the percentage of stocks above their 200-day moving average has moved within a wide 10% to 92% range. The extreme lows—seen in June and September 2022 at just 10%—came during periods of heightened recession fears and monetary tightening.
The recent cycle bottom occurred just last month, when the figure dipped to 15% following April’s sharp, tariff-driven selloff.
The highest reading in the last four years came in May 2021, at 92%, during a time of peak post-pandemic optimism. More recently, …
Full story available on Benzinga.com
Despite a powerful 22% surge in the S&P 500 since the April lows—driven by easing U.S.-China trade tensions and a 90-day pause on new tariffs—only half of the index’s stocks have managed to rise above their 200-day moving average, indicating a market rally that remains potentially incomplete.
This technical indicator, often used to gauge long-term trends and market breadth, currently shows that just 49.9% of S&P 500 components are in what traders would consider a bullish trend.
That figure remains below both the five- and 10-year averages of 60%, suggesting a wide swath of the market has yet to participate in the rebound.
Breadth Gauge Shows Room To Run
Over the past four years, the percentage of stocks above their 200-day moving average has moved within a wide 10% to 92% range. The extreme lows—seen in June and September 2022 at just 10%—came during periods of heightened recession fears and monetary tightening.
The recent cycle bottom occurred just last month, when the figure dipped to 15% following April’s sharp, tariff-driven selloff.
The highest reading in the last four years came in May 2021, at 92%, during a time of peak post-pandemic optimism. More recently, …
Full story available on Benzinga.com
Despite a powerful 22% surge in the S&P 500 since the April lows—driven by easing U.S.-China trade tensions and a 90-day pause on new tariffs—only half of the index’s stocks have managed to rise above their 200-day moving average, indicating a market rally that remains potentially incomplete.
This technical indicator, often used to gauge long-term trends and market breadth, currently shows that just 49.9% of S&P 500 components are in what traders would consider a bullish trend.
That figure remains below both the five- and 10-year averages of 60%, suggesting a wide swath of the market has yet to participate in the rebound.
Breadth Gauge Shows Room To Run
Over the past four years, the percentage of stocks above their 200-day moving average has moved within a wide 10% to 92% range. The extreme lows—seen in June and September 2022 at just 10%—came during periods of heightened recession fears and monetary tightening.
The recent cycle bottom occurred just last month, when the figure dipped to 15% following April’s sharp, tariff-driven selloff.
The highest reading in the last four years came in May 2021, at 92%, during a time of peak post-pandemic optimism. More recently, …Full story available on Benzinga.com Read MoreALB, Analyst Color, ARE, BDX, BIIB, China, DOW, EIX, ENPH, Equities, HAL, IQV, Large Cap, LEN, LYB, MRK, ON, REGN, Stories That Matter, tariffs, TECH, TER, TGT, trade deal, UNH, WST, Top Stories, Economics, Analyst Ratings, WST, US9553061055, LYB, NL0009434992, BIIB, US09062X1037, ENPH, REGN, US75886F1075, ON, TECH, US8783771004, IQV, ALB, US0126531013, ARE, US0152711091, BDX, US0758871091, DOW, US2605431038, EIX, US2810201077, HAL, US4062161017, LEN, US5260571048, MRK, US58933Y1055, TER, US8807701029, TGT, US87612E1064, UNH, US91324P1021, Analyst Color, Equities, Large Cap, Top Stories, Economics, Analyst Ratings, Benzinga Economics
