The S&P 500 Index (SPX) has shown signs of market divergence as the percentage of stocks trading above their 20-day moving average (DMA) has increased, despite a decline in the index itself. This trend suggests strengthening internals over a shorter timeframe. Notably, the percentage of stocks above the 20 DMA has rebounded from 10% to over 40%, marking a one-month high. Analysts have pointed out that this pattern is reminiscent of previous market bottoms, particularly following the November 2023 correction. Additionally, the SPX has recently hit its 25-week moving average for the first time since the August 2024 low, which is viewed as a strong buy signal. The target for the SPX is projected at 7000 by the end of 2025, representing a potential 100% rise from recent levels. However, fewer stocks are maintaining their positions above long-term support levels, indicating caution as historically, such conditions have signaled market bottoms or oversold situations.