Breadth data has continued to improve with the percent of stocks above their long-term average rising just slightly above 50% after Monday’s strength. With Monday’s move we had another strong advancing day, the third in a row without a strong downside breadth day. Thrusts continue to also rise in the Thrust Composite but there’s also been two Exhaustive Breadth Thrusts registered as well, suggesting short-term headwinds are still present as stocks get a little stretched. The S&P 500 is back to its YTD starting place and the majority of stocks have moved positive for 2025 as well.
Breadth Thrust Composite
A collection of multiple breadth thrust indicators based on different indices that incorporate price and volume to mark when extremely strong buying activity is taking place by the movement of individual stocks. When multiple of these thrusts occur in a short period of time, the reaction in the S&P 500 has historically been positive going forward.
Breadth Thrust Composite is at +5 and the Primary Thrust Composite is at +2. This matches what we hit in 2023 but not quite the thrust levels of the 2022 low. I don’t mean that’s a bad thing, just an observation. There’s been a surge in buying pressure and upside movement in equities that’s causing these thrusts and historically they have been bullish for stocks.
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