Market Monitor Trends and Breadth August 13 BMO - Market Breadth Rebounds Strongly After Monday’s Weakness

(All data & visualisations by ChartMill.com)

Daily Market Trend Analysis – August 12, 2025 (After Market Close)

New all-time highs for SPY and QQQ, explosive move for IWM

Short Term Trend

SPY (S&P 500 ETF)

• Short-Term Trend: Bullish (from neutral)
• Next Support at $620 - $600
• Next Resistance at $640
• Volume: At Average (50)
• Pattern: Up day - New All-time High

QQQ (Nasdaq-100 ETF)

• Short-Term Trend: Bullish (no change)
• Next Support at $550 - $540
• Next Resistance at $575
• Volume: At Average (50)
• Pattern: Up day - New All-time High

IWM (Russell 2000 ETF)

• Short-Term Trend: Positive (from neutral)
• Next Support at $220 - $215
• Next Resistance at $226
• Volume: Above Average (50)
• Pattern: Strong Up Day - Close at HOD

Long Term Trend

SPY (S&P 500 ETF)

• Long-Term Trend: Positive (no change)

QQQ (Nasdaq-100 ETF)

• Long-Term Trend: Positive (no change)

IWM (Russell 2000 ETF)

• Long-Term Trend: Positive (from neutral)

Daily Market Breadth Analysis – August 12, 2025 (After Market Close)

U.S. market breadth surged on August 12, 2025, reversing the broad weakness seen on August 11. Gains were supported by strong advancing volume, widespread participation across moving average measures, and improving new highs. The shift suggests a return to short-term positive momentum after a single-day pullback.

After Monday’s notable weakness, breadth readings rebounded sharply across nearly all tracked metrics on Tuesday. Advancing issues dominated, with 79.5% of stocks closing higher versus just 18.3% declining. This is a significant reversal from August 11, when decliners outnumbered advancers (56.3% vs. 40.4%).

Short-term strength also returned, as the percentage of stocks posting 4%+ daily gains jumped to 10.6% (from 3.8%), while those with 4%+ losses dropped to just 1.9%.

Participation in key moving averages strengthened notably:

• SMA(20)+: 61.7% (up from 48.2%)

• SMA(50)+: 65.6% (up from 58.8%)

• SMA(100)+: 70.2% (up from 66.1%)

• SMA(200)+: 55.2% (up from 51.6%)

New Highs/Lows

New highs (NH) climbed to 8.8%, the best level since August 4, while new lows (NL) remained minimal at 1.4%. Point & Figure bullish signals (PP) rose to 23.1%, indicating an improvement in technical setups.

Weekly and Monthly Breadth

Breadth improvement was also visible across weekly and monthly trends:

• Adv Week: 64.8% (from 51.1%)

• Adv Month: 63.2% (from 48.5%)

• Adv 3 Month: 67% (from 62.9%)

The strong daily advance erased much of the deterioration from Monday’s pullback. Compared to the previous breadth analysis, where weakness was mostly limited to one session without broader technical damage, Tuesday’s action confirmed that underlying market participation remained healthy.

Breadth Trend Rating: 4 – Positive

While the rally appears to have been broad-based, there were no single large-cap earnings surprises or macroeconomic announcements before market close that could fully explain the magnitude of the breadth rebound, suggesting it was more of a sentiment-driven rotation back into equities after a short-term dip.

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Kristoff - ChartMill

Next to read: Market Monitor News, August 13 BMO