In early January 2025, market indicators reveal concerning trends for the S&P 500. As of January 2, only 19% of S&P 500 stocks were trading above their 50-day moving average, marking the lowest level since October 2023. Additionally, 36% of these stocks were above their 100-day moving average, the fewest since November 2023. December 2024 saw a stark disparity in stock performance, with only 54 stocks closing higher compared to 449 that declined, resulting in a negative spread of 395, the lowest since September 2022. The S&P 500 also recorded a lower low, the lowest since before Thanksgiving 2024. However, there are signs of potential recovery, as new highs on the NYSE have recently begun to exceed new lows, albeit marginally, indicating a possible shift in market sentiment.