By Kristoff De Turck - reviewed by Aldwin Keppens
Last update: Jun 12, 2025
(All data & visualisations by ChartMill.com)
SPY and QQQ opened with a gap up but could not hold those opening gains and ended up closing slightly lower.
IWM also ended the trading day slightly negative (-0.4%). However, a bearish engulfing topping pattern was formed.
The latest session (June 11, 2025) showed a clear deterioration in market breadth compared to earlier this week. Only 42.1% of stocks advanced, down sharply from 64.9% the previous day and 71.6% on June 6.
Decliners surged to 55.2%, highlighting the shift in sentiment.
This marks a reversal of the strong participation seen in the prior analysis, where we observed three consecutive days of 63%+ advancing stocks, a signal that bullish momentum may have peaked for now.
Despite the weak daily performance, the percentage of stocks trading above key moving averages remains strong:
SMA(20)+: 72.0%
SMA(50)+: 78.2%
SMA(100)+: 58.4%
SMA(200)+: 44.6%
As shown in the chart, these indicators have been climbing steadily for over a week and have held steady despite today's pullback. This suggests that the recent weakness may still be a pause in an ongoing bullish structure rather than a trend reversal.
New Highs (NH) crept up slightly to 4.7%, while New Lows (NL) ticked up to 0.7%. Although still tilted positively, this is the first day in over a week where new lows expanded meaningfully.
Continued erosion here would be a red flag.
While short-term breadth weakened, medium- and long-term trends are beginning to show cracks too:
Advancing 1-week: 69.6% (down from 73.8% on June 9)
Advancing 1-month: 63.4% (down from 72.3% on June 4)
Advancing 3-month: 59.1% (flattish)
Adv. 25% over 3-month: 11.3% (holding steady)
This cooling momentum, especially over 1-week and 1-month horizons, reflects a market digesting prior gains.
The market breadth picture on June 11 signals a short-term pullback, not (yet) a breakdown. While fewer stocks participated in gains today, most remain above key moving averages, and longer-term momentum is holding. However, the declining trend in new highs and flattening of 3-month leaders warrants caution.
From the June 10 analysis, where we noted broad and sustained strength, we now face a “cooling-off” period that could evolve into either a healthy consolidation, or something more corrective, depending on whether breadth resumes upward.
Next to read: Market Monitor News, June 12
NYSEARCA:IWM (7/18/2025, 1:28:07 PM)
222.18
-1.74 (-0.78%)
NASDAQ:QQQ (7/18/2025, 1:28:10 PM)
560.935
-0.87 (-0.15%)
NYSEARCA:SPY (7/18/2025, 1:28:09 PM)
626.98
-1.06 (-0.17%)
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