70% of S&P 500 Stocks Above 50-Day Average as Momentum Improves

Market breadth in U.S. equities has strengthened notably, reinforcing the current bullish trend.

At present, around 70% of companies in the S&P 500 index are trading above their 50-day moving average, marking the highest reading since August 2025.

The increase has been rapid. Since November, the share of stocks trading above this key technical level has more than doubled, reflecting a broadening of the rally beyond a narrow group of market leaders.

This expansion of price participation is typically viewed as a constructive signal. When gains spread across sectors and market capitalisations, it often points to improving underlying momentum and stronger overall market health.

From a technical perspective, the U.S. equity market is currently in a strong phase. Such conditions have historically been associated with continued upside, particularly when supported by rising participation rather than isolated leadership.

At the same time, elevated breadth readings can also indicate short-term overheating. When a large share of stocks trade above their moving averages, the market may become vulnerable to consolidation or pullbacks if momentum begins to fade.

As a result, while the broader trend remains constructive, a slowdown in momentum could justify a gradual shift toward lower-risk exposure in the near term.