Breadth Collapses Again After One-Day Rebound

(All data & visualisations by ChartMill.com)

Daily Market Trend Analysis – November 6, 2025 (After Market Close)

Trend Change to Neutral (from positive) for SPY & QQQ

Short Term Trend

SPY (S&P 500 ETF)

• Short-Term Trend: !!TREND CHANGE - NEUTRAL!! (From Positive)
• Next Support at $653
• Next Resistance $674
• Volume: Slightly Above Average (50)
• Pattern: Down Day - Weak Close Below Support

QQQ (Nasdaq-100 ETF)

• Short-Term Trend: !!TREND CHANGE - NEUTRAL!! (From Positive)
• Next Support at $610
• Next Resistance $637
• Volume: Well Above Average (50)
• Pattern: Down Day - Week Close At Support

IWM (Russell 2000 ETF)

• Short-Term Trend: Neutral (No Change)
• Next Support at $237
• Next Resistance at $253
• Volume: At Average (50)
• Pattern: Down Day - Weak Close

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 – November 6, 2025 (After Market Close)

After Wednesday’s breadth rebound, Thursday’s action (November 6, 2025) saw breadth collapse again. Only 28.5% of stocks advanced while 69.3% declined, essentially mirroring the weakness seen on Monday and Tuesday.

Key Observations:

1. Another Failed Follow-Through

The breadth rally on November 5 now clearly stands as an isolated event. Rather than building on that strength, the market regressed sharply:

• The percentage of stocks up more than 4% fell to just 3.2% (from 5.2%).

• Those down more than 4% jumped to 10.4% (from 2.7%).

This signals broad-based selling pressure and minimal upside momentum.

2. Fewer Stocks Holding Above Key Averages

There was significant deterioration in the number of stocks trading above key moving averages:

• SMA(20)+ fell from 37.8% to 29.4%

• SMA(50)+ dipped from 41.7% to 37.6%

• SMA(100)+ and SMA(200)+ also declined modestly, now at 49.7% and 55.8% respectively.

These metrics suggest more stocks are breaking below short- and medium-term support zones — a negative sign for overall trend strength.

3. New Highs Remain Anemic

New highs (NH) remained extremely low at 2.2%, while new lows (NL) ticked up slightly to 3.9%. The lack of leadership from strong stocks remains a major concern.

4. Weakness Across All Timeframes

Breadth was weak not only on the day, but also over weekly and monthly horizons:

• Weekly advancers: 30% vs 69% decliners

• Monthly advancers: 35% vs 64.3% decliners

Despite some signs of stabilization in longer-term breadth (e.g. 3-month advance-decline ratios), short-term selling pressure dominates.

5. Participation and Momentum Declining

• The percentage of stocks up more than 25% in 3 months dropped slightly to 12.7%

• Those down more than 25% ticked up to 8.1%

This suggests the market is losing high-momentum outperformers while laggards remain persistent.

Conclusion & Breadth Trend Rating

The market breadth picture has turned sharply negative again, and with it, so has the overall tone.

The rapid reversal following a one-day rally underlines the fragile state of market internals. Wednesday’s surge now looks like a classic bear market bounce, fast, strong, but unsustainable.

There is currently no sign of a healthy accumulation phase. Most indicators have reverted to their prior weakening trend, and downside momentum appears to be regaining strength.

Breadth Trend Rating: Negative

---

Kristoff - ChartMill

Next to read: Wall Street Slips as Job Cuts and Shutdown Fears Shake Confidence