Call It Whatever You Want. This Is a Bull Market 🐂
By Grant Hawkridge
February 9, 2026
Today's number is... 3
Three market caps advance–decline lines are advancing together, large, mid, and small.
Here’s the chart:
Let's break down what the chart shows:
The chart displays three Advance–Decline lines:
The top line tracks the S&P 500 Advance–Decline line in black.
The middle line tracks the S&P 400 Advance–Decline line in grey.
The bottom line tracks the S&P 600 Advance–Decline line in blue.
The Takeaway: This is a bull market.
All three Advance–Decline lines are rising together, large caps, mid caps, and small caps moving at the same time. That is the setup traders wait for because gains are being carried by many stocks, not a narrow group. Tops do not form with participation like this.
The S&P 500 remains 7.1% above its 200-day moving average and just 0.7% below its all-time high. Price is holding above trend while breadth continues to push higher. That is how bull markets behave when buyers keep accepting higher prices.
Mid caps strengthen the case. The S&P 400 is 11.6% above its 200-day moving average and already back at all-time highs. Money is not concentrating into size. It is moving further out the risk curve.
Small caps confirm it again. The S&P 600 sits 14.0% above its 200-day moving average and is at 52-week highs. When small caps stay involved, risk appetite is active, not defensive.
Markets do not roll over with this backdrop. Participation fades first when trends fail. That is not happening. Breadth is strong, trend is intact, and risk continues to spread across the market.
This is a bull market.
If you disagree, what evidence would change your mind?
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