Apr 9, 01:38 PM

S&P 500 Faces Market Breadth Weakness as Less Than 1% of Stocks Trade Above 5-Day Average; 6% Above 50-Day Average

Recent trading data indicates a concerning trend for the S&P 500, with fewer than 1% of its stocks trading above their 5-day moving average, marking the lowest level since June 13, 2022. Additionally, only 6% of S&P 500 stocks closed above their 50-day moving average, a figure that reflects an oversold condition more extreme than 98% of historical data points. Market breadth has also deteriorated, with fewer than 16% of stocks trading above their 200-day moving average, the lowest since October 2022. Analysts have noted that the S&P 500 has tumbled from a peak near 6100, with only about 20% of stocks remaining in uptrends. The 14-day Relative Strength Index (RSI) for the S&P 500 is currently at 21.36, a low not seen frequently over the past 30 years. Furthermore, a 'death cross' is anticipated in the coming days, where the 50-day moving average drops below the 200-day moving average, a technical indicator that historically has preceded market declines, although past occurrences have sometimes led to short-term rebounds.

#Relative Strength Index

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