Market Breadth Stabilizes After Sharp Dip, but Overall Trend Remains Weak

By Kristoff De Turck - reviewed by Aldwin Keppens

Last update: Nov 3, 2025

ChartMill Market Monitor Report Trends and Breadth

(All data & visualisations by ChartMill.com)

Daily Market Trend Analysis – October 31, 2025 (After Market Close)

Short Term Trend Change for IWM.

Short Term Trend

SPY (S&P 500 ETF)

Short-Term Trend: Positive (No Change)
Next Support at $673
Next Resistance $690
Volume: Slightly Above Average (50)
Pattern: Down Day

QQQ (Nasdaq-100 ETF)

Short-Term Trend: Positive (No Change)
Next Support at $613
Next Resistance /
Volume: Slightly Above Average (50)
Pattern: Down Day

IWM (Russell 2000 ETF)

Short-Term Trend: !!TRENDCHANGE!! - Neutral (From Positive)
Next Support at $235
Next Resistance at $252
Volume: At Average (50)
Pattern: Up Day

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 (no change)

Daily Market Breadth Analysis – October 31, 2025 (After Market Close)

After Wednesday’s sharp market-wide sell-off, Thursday’s session (Oct 31) showed a rebound in short-term participation metrics.

Following the pronounced weakness observed on Thursday, October 30 - with just 29.7% of stocks advancing and 67.8% declining - Friday’s session (October 31) delivered a technical bounce in participation. The advance/decline ratio improved to 57.9% advancing vs. 39.5% declining, signaling some buying interest returning to the market.

This daily rebound contrasts with the prior two sessions (Oct 29 and 30), which marked the worst breadth readings since October 22.

Thursday’s 5.2% of stocks advancing more than 4% also shows stronger upside momentum compared to the prior days (2.8% and 3.2%, respectively). However, the number of stocks rising more than 4% remains moderate, suggesting the bounce lacks broad conviction.

Despite the one-day improvement, longer-term participation metrics continue to weaken:

The percentage of stocks above their 20-day SMA fell again to 43.2% (down from 47.7%).
Those above the 50-day SMA dropped slightly to 48.3% (from 47.6%).
Readings above the 100- and 200-day SMAs (57.1% and 59.3%, respectively) have declined steadily since October 28.
New highs (NH) vs. new lows (NL) also show a bearish tilt. Only 2.2% of stocks hit new highs, while 2.9% hit new lows, not a dramatic spread, but the new lows are still outpacing highs for the second day in a row.

The weekly and monthly advance/decline ratios remain weak:

Only 33% of stocks advanced on the week, with 65.8% declining, the weakest weekly breadth reading in the 10-day dataset.
On a monthly basis, advancing stocks dropped to 42.8%, while decliners rose to 56.6%, further underscoring the deteriorating trend.

From a broader 3-month perspective, the trend is still clearly biased toward weakness:

31.8% of stocks have declined, while only 17.5% are up more than 25%.

This gap has barely improved over the past few sessions, despite the one-day bounce.

Conclusion:

While Thursday brought a welcome pause in the recent selling pressure, the improvement was limited to short-term metrics. Longer-term breadth remains under pressure across all key moving average thresholds, and the cumulative advance/decline numbers continue to weaken.

Unless we see sustained improvement - particularly a shift in stocks trading above their 20- and 50-day SMAs and a reversal in the weekly/monthly A/D metrics - this rebound should be treated with caution.

Current Breadth Trend Rating: Neutral with a negative bias