Breadth
Declines Abound

by | Apr 28, 2022

Key Points

  • NYSE A/D Line Breaks Support to The Downside
  • S&P 500 Trend Breadth Maintains Low Prints
  • Small Cap Breadth Becomes Washed-Out
  • NASDAQ 100 Metrics Continue the Decline

NYSE Breadth

Breadth metrics for the NYSE have broadly declined over the past week.

  • Advance/Decline Line: support broken to the downside below a declining 50-day moving average.
  • Percent Above Their 200-Day Moving Average: 23% from 32% last week.
  • Percent Above Their 50-Day Moving Average: 25% from 45% last week.
  • Percent Above Their 20-Day Moving Average: 17% from 47% last week.

S&P 500 Breadth

Breadth metrics for the S&P 500 have broadly declined over the past week.

  • Advance/Decline Line: Holding above the March lows but sliced through the 50-day moving average to the downside.
  • Percent Above Their 200-Day Moving Average: 41% from 50% last week.
  • Percent Above Their 50-Day Moving Average: 33% from 63% last week.
  • Percent Above Their 20-Day Moving Average: 16% from 64% last week.

S&P 600 Breadth

Breadth metrics for the S&P 600 have broadly declined over the past week.

  • Advance/Decline Line: Support broken at the early April lows to the downside below a declining 50-day moving average.
  • Percent Above Their 200-Day Moving Average: 25% from 40% last week.
  • Percent Above Their 50-Day Moving Average: 20% from 47% last week.
  • Percent Above Their 20-Day Moving Average: 13% from 57% last week.

NASDAQ 100 Breadth

Breadth metrics for the NASDAQ 100 have broadly declined over the past week.

  • Advance/Decline Line: Heading toward long-term support below the declining 50-day moving average.
  • Percent Above Their 200-Day Moving Average: 22% from 30% last week.
  • Percent Above Their 50-Day Moving Average: 29% from 47% last week.
  • Percent Above Their 20-Day Moving Average: 12% from 33% last week.

Take-Aways:

Market volatility has taken its toll on market breadth over the past week, as readings have declined broadly. Long-term breadth continues its pattern of lower highs, and many indices are approaching the washed-out readings printed in March, leaving the door open for a potential counter-trend rally. However, investors would be prudent to approach such a rally with magnified risk management, as the decline in breadth continues to suggest a headwind for the main indexes.

Disclosure: This information is prepared for general information only and should not be considered as individual investment advice nor as a solicitation to buy or offer to sell any securities. This material does not constitute any representation as to the suitability or appropriateness of any investment advisory program or security. Please visit our FULL DISCLOSURE page.