U.S. Stock Market Breadth Surges: Key Charts

Bespoke: S&P 500’s August Rebound Driven by Broad Market Strength Across Multiple Metrics

More U.S. stocks are participating in the ongoing stock market rally, with the S&P 500 extending its August rebound, according to Bespoke Investment Group.

“Since the sharp decline that bottomed out on August 5, the market’s recovery has been marked by robust underlying breadth,” Bespoke noted in a Tuesday report.

The wealth-management and research firm pointed out significant improvements across various metrics, including the number of stocks reaching 52-week highs, the percentage of stocks trading above their 50-day moving averages, and the net number of advancing stocks.

On Tuesday, the S&P 500’s 10-day advance/decline line stayed above 1,000 for the seventh consecutive day, the longest streak since October 2020. Bespoke highlighted that this is “one of just 22 such streaks since 1990.”

“Historically, when the S&P 500’s 10-day A/D line remained above 1,000 for seven days, future returns have typically been positive, especially when these streaks occur at least a year apart,” Bespoke added.

The S&P 500 rose 0.2% on Tuesday to close at 5,625.80, just 0.7% below its record close on July 16. The index is up 1.9% in August and has gained 17.9% year-to-date.

On Monday, the S&P 500’s 10-day advance/decline line reached 1,733, its highest level since late October 2022, which coincided with the start of the bull stock market, according to Bespoke.

U.S. stocks broadly advanced on Tuesday, with the Nasdaq Composite rising 0.2% and the Dow Jones Industrial Average inching up 0.1% to hit a new all-time high.