Analysis: US stock market breadth improves rapidly, percentage of S&P 500 constituents above 50-day moving average rises to 61%

Odaily reports: The Kobeissi Letter posted on X platform that the latest market data shows US stock market breadth is improving rapidly. On October 23, the proportion of S&P 500 index constituents with stock prices above their 50-day moving averages rose 5 percentage points to 61%, hitting a new high since mid-August and more than tripling from the level at the intraday low on October 1.

Meanwhile, the proportion of constituents with stock prices above their 200-day moving averages rose 3 percentage points to 57%, hitting a new high since September 9, with a cumulative increase of 17 percentage points over the past three weeks. Although the S&P 500 index was essentially flat over the same period, the improvement in market breadth has ranked among the three largest in the past three years.

In addition, on October 22, the S&P 500 index fell 1.2%, but 335 constituents still closed higher, indicating that the coverage of rising stocks within the US stock market is expanding and that overall market performance may be stronger than what the index reflects.