Percentage of S&P 500 Stocks Above the 200‑Day Moving Average
How many S&P 500 stocks trade above their own 200-day moving average, as of the Oct 27, 2026 close, by sector and month by month, with every yearly low and high since 2017.
GlossaryGlossary
What Is Market Breadth? Definition and Example
What market breadth measures, the common breadth indicators, and what a narrow market looked like in the year to Sep 30, 2026.
Key takeaways
- Market breadth measures how many stocks are taking part in a market move, rather than how much the index moved.
- Common gauges: the share of stocks above their 200-day moving average, the advance-decline line, new highs vs new lows, and equal-weight vs cap-weight returns.
- Breadth was narrow in the year to Sep 30, 2026: only 40.8% of the largest US stocks beat the S&P 500 ETF (SPY), in Exent’s data.
- A rally led by a few giants is more fragile, because a setback in those few moves the whole index.
Market risk reading, cross‑asset context and an events calendar: see Exent →
What is market breadth?
Breadth looks under the index. The S&P 500 is weighted by company size, so a handful of very large stocks can lift it while most stocks go nowhere. Breadth indicators count participation instead: how many stocks are rising, at highs, or in uptrends.
Which breadth indicators matter?
| Indicator | What it shows | Healthy reading |
|---|---|---|
| % of stocks above their 200-day average | How many stocks are in long-term uptrends | A majority and rising |
| Advance-decline line | Cumulative rising minus falling stocks | Rising with the index |
| New 52-week highs vs lows | Leadership vs breakdowns | Highs outnumber lows |
| Equal-weight vs cap-weight index | Average stock vs the giants | Moving together |
Example: a narrow market
In Exent’s data for the year to Sep 30, 2026, SPY returned 15.7%, but the median large US stock returned 7.8%, and only 194 of 476 stocks beat the index. Over the longer run, an equal-weight S&P 500 (RSP) returned 11.5% a year from July 2016 to September 2026 against 15.2% for SPY, as a few mega caps led. (The stock list is today’s largest companies, so it carries survivorship bias.) More in narrow market rallies and the Magnificent 7 vs the other 493.
Why it matters for a self-directed investor
Narrow breadth means an index fund is more concentrated than it looks, and a diversified stock portfolio can lag the index even when it is doing its job. See also the 200-day moving average and equal weighting.
Common mistakes
- Treating narrow breadth as a sell signal: narrow markets can last for years.
- Judging a diversified portfolio against a cap-weighted index in a narrow year without context.
- Using a single breadth gauge instead of several.
Follow market breadth with Exent
- Market Intelligence tracks the Magnificent 7 against the other 493 stocks in the S&P 500.
- Market Intelligence tracks cross‑asset signals daily, next to a market summary with cited sources and an events calendar.
Frequently asked questions
It means few stocks are driving the index. The rally depends on a small group, which raises the risk if that group stumbles.
There is no fixed line. Many investors read a majority above their 200-day average, and a rising share, as healthy participation.
Yes. When the equal-weight index lags the cap-weight one, the average stock is doing worse than the largest companies.
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Educational content, not investment advice. Examples are illustrative; past performance does not guarantee future results.