S&P 500 | Short-Term Breadth Signal | (April 2025)

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S&P 500 | Short-Term Breadth Signal | (April 27, 2025)

1️⃣ Insight Summary:
The S&P 500 percentage of stocks above the 20-day moving average is dropping sharply. This indicator is a great tool to catch local extremes — and right now, it’s flashing an important signal.

2️⃣ Market Setup:
🔻 Sell / Open Short Zones:
When this indicator pushes above 85–90% (marked in red), the market tends to be overheated. Historically, after these levels, corrections often follow.

🟢 Buy / Open Long Zones:
When the indicator falls below 20–25% (marked in green), the market becomes oversold. Pressure builds up, and probability for a bounce increases.

❌ Always be careful: in strong bear trends, oversold readings can stay extended longer than expected — so confirm structure before entering heavily.


4️⃣ Follow-up:
I will be closely watching for confirmation signs like a reversal in breadth and price stabilization before committing more to long setups.

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Disclaimer: This is not financial advice. Always conduct your own research. This content may include enhancements made using AI.

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