Market Monitor Trends (SPY, QQQ, IWM) and Breadth May 28

(All data & visualisations by ChartMill.com)

Daily Market Trend Analysis – May 27, 2025 (After Market Close)

Strong recovery for the three US index ETFs after the extended Memorial Day weekend. All three are now quoting close to their next major resistance.

Once that hurdle is cleared, the all time high is in sight for the $SPY and $QQQ.

Short Term Trend

SPY (S&P 500 ETF)

• Short-Term Trend: Bullish (no change)
• Next Support at $570
• Next Resistance at $595
• Volume: At Average (50)
• Pattern: Gap Up

QQQ (Nasdaq-100 ETF)

• Short-Term Trend: Bullish (no change)
• Next Support at $490
• Next Resistance at $520
• Volume: At Average (50)
• Pattern: Gap Up

IWM (Russell 2000 ETF)

• Short-Term Trend: Bullish (no change)
• Next Support at $200
• Next Resistance at $205 & $210
• Volume: At Average (50)
• Pattern: Gap Up

Long Term Trend

SPY (S&P 500 ETF)

• Long-Term Trend: Preliminary Positive (weekly candle), final result on Friday after market close. (from neutral)

QQQ (Nasdaq-100 ETF)

• Long-Term Trend: Positive (no change)

IWM (Russell 2000 ETF)

• Long-Term Trend: Neutral (no change)

Daily Market Breadth Analysis – May 27, 2025 (After Market Close)

Signs of Strength Return to the Market

Market breadth indicators over the last two weeks suggest a notable shift in sentiment, particularly on May 27, 2025. After a mid-month period marked by weakness and broad-based declines (most notably May 21), the latest data points to improved internal strength.

Daily Advances vs Declines

The first chart shows the percentage of advancing vs. declining stocks per day.

Highlights include:

• May 27: A strong bullish signal with 81% of stocks advancing and only 17.3% declining.

• May 21: A significant down day, with only 12.4% of stocks advancing and 86.4% declining—a clear washout and potential capitulation signal.

• Recent Rebound: Since the May 21 low, advancing breadth has steadily recovered, culminating in the breakout move on May 27.

Market Breadth via Moving Averages

The second chart plots the percentage of stocks trading above their 50-day and 200-day simple moving averages (SMA):

• SMA(50): Rebounded from a mid-month dip (62% on May 23) to 69% by May 27, showing improved short- to mid-term momentum.

• SMA(200): Long-term breadth remains below 50%, but improved from 36% on May 23 to 40.9% on May 27.

Interpretation: The rising percentage of stocks above both moving averages supports the case for a broad-based rally rather than a narrow leadership move.

Weekly Breadth Momentum

The third chart analyzes weekly advancing and declining breadth:

• A bearish shift occurred between May 19–23, with declining stocks outpacing advancers by a wide margin.

• May 27 shows a positive turn: 38% of stocks advancing vs. 60.9% declining for the week. While not yet fully reversed, the improvement from recent lows is evident.

Key Takeaways

Short-Term Bullish Reversal: After severe selling pressure mid-month, breadth indicators show a notable reversal toward strength.

Watch the 200-Day SMA: While near-term participation has improved, only ~41% of stocks are trading above their 200-day SMAs. A sustainable rally will need this to climb toward 50%+.

Breadth Confirms Price: The May 27 surge in breadth confirms the bullish price action observed across major indices on that day, reinforcing the move’s credibility.

Next to read: Market Monitor News, May 28