Breadth Update 6/10/2025

SPX Nears New High While Many Stocks Still Struggle In Large Drawdowns

The S&P 500 is 2% from its all-time high. Some sectors have already breached their prior high and many stocks have done the same. However, the average drawdown for large caps is still pretty steep, sitting as of Tuesday' at -16% and over 60% of stocks are down more than 10%. 49% of the S&P 500 is above the 200-day moving average. RSP continues to underperform its cap weight brother, SPY but the market is trying to get participation higher - Friday saw a strong advance day as 83% of stocks moved higher on the day. The bright spots in the breadth data are trying to shine through but bulls would get a deeper breath of relief if breadth began to expand.

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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 has rolled back to zero with the latest set of thrusts falling out of the lookback period of the Composite.