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Most S&P 500 Stocks No Longer Trade Above Their 50-Day Averages: A Healthy Correction or the End of a Bull Market?

For the first time since early November 2023, fewer than 30% of S&P 500 stocks are trading above their 50-day moving averages, a clear indicator of the poor breadth of the market since then. The dramatic drop from 85% at the end of March and 92% at the beginning of January underscores the sharp reversal in market dynamics. 50-day moving averages are often used as a barometer of a stock's short-term health. A drop below this level indicates that the majority of stocks in the market are declining.
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