49.5% of S&P 500 stocks are now in strong uptrends.
Here’s the chart:
Let's break down what the chart shows:
The blue line in the top panel shows the price of the S&P 500 index.
In green is the % of S&P 500 stocks above both their 200-day and their 50-day moving averages, indicating a longer-term uptrend.
In yellow is the % of S&P 500 stocks above their 200-day but below their 50-day moving averages. This indicates a longer-term uptrend but a short-term mess.
In red is the % of S&P 500 stocks below their 200-day and below their 50-day moving averages, indicating a longer-term downtrend.
The Takeaway: This chart does a good job of showing what’s really happening under the surface. And something just changed.
For 47 trading days, more S&P 500 stocks were trading below both their 200-day and 50-day moving averages. That trend had been in place for a while.
Now, that’s flipped.
Nearly half of the S&P 500 stocks are now above both their 200-day and 50-day averages. That means more stocks have moved into uptrends. We haven’t seen this many names trending higher since December of last year.
Does this shift mean we’re in a new environment? Maybe. Maybe not. I don’t know.
But that’s the point. Markets change. And when they do, it helps to notice and adjust. Sticking to one view too tightly can be a problem.
So, right now, the weight of evidence is leaning more bullish. That doesn’t mean the market moves straight up—but it does suggest things are getting better.
Grant Hawkridge | Chief Aussie Operator, All Star Charts
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