37.3% of S&P 500 stocks are now in downtrends, trading below both their 50-day and 200-day moving averages.
Here’s the chart:
Let's break down what the chart shows:
The top panel shows the S&P 500 in black.
The lower panel tracks internal trend structure across the index.
Green shows the percentage of stocks above both the 50-day and 200-day averages.
Yellow shows those above the 200-day but below the 50-day.
Red shows those below both.
The Takeaway: For five months, green led red.
More stocks were trending higher than lower, and that internal strength supported every pullback along the way.
That streak just ended.
Red has crossed above green for the first time since May, showing that participation is weakening beneath the surface.
This kind of crossover often signals a shift in momentum, not a breakdown.
When uptrend participation fades this sharply, the market usually enters a digestion phase before the next move takes shape.
Right now, 36.1% of the index remains in full uptrends, 21.3% is in short-term pullbacks inside longer-term uptrends, and 37.3% has broken both trend lines. The balance of power has shifted, with more names losing structure than building on it.
This is a bearish rotation, but not yet a confirmed breakdown.
Breadth is fading, not collapsing. The path of least resistance has flattened.
Until green regains the lead, rallies will need confirmation from improving breadth, not just price.
The bulls have lost momentum. The bears have the opening. Now we find out who follows through.
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