Market Monitor Trends (SPY, QQQ, IWM) and Breadth June 09

(All data & visualisations by ChartMill.com)

Daily Market Trend Analysis – June 06, 2025 (After Market Close)

After Friday, the IWM etf finally broke out of its inverted head-and-shoulders pattern.

The SPY and QQQ also opened higher and closed Friday with a 1% gain. Both ETFs are now quoting very close to their all time highs. However, the doji candle indicates some investor caution.

The all-time highs for SPY and QQQ are not far away and the scenario so far is still that they will be reached in the coming days/weeks.

Short Term Trend

SPY (S&P 500 ETF)

• Short-Term Trend: Bullish (no change)
• Next Support at $580
• Next Resistance at $610
• Volume: Below Average (50)
• Pattern: Doji Candle

QQQ (Nasdaq-100 ETF)

• Short-Term Trend: Bullish (no change)
• Next Support at $520
• Next Resistance at $540
• Volume: Below Average (50)
• Pattern: Doji Candle

IWM (Russell 2000 ETF)

• Short-Term Trend: Bullish (no change)
• Next Support at $210 & $205
• Next Resistance at $215 & $230
• Volume: Slightly below Average (50)
• Pattern: Hanging Man Candle

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: Neutral (no change)

Daily Market Breadth Analysis – June 06, 2025 (After Market Close)

On Friday, June 6, market breadth metrics revealed a strong upside reversal in participation. Approximately 71.6% of all stocks advanced, significantly higher than Thursday’s 39.9%.

Declining stocks fell to 26%, indicating a broad rally rather than isolated strength.

This upsurge confirms and amplifies Thursday’s mixed signals, which showed slightly improving SMA metrics but lacked confirmation from the majority of advancing stocks. The June 6 data clearly flips the short-term tone back to bullish.

Key Observations:

Advancing vs Declining Stocks

The percentage of advancing stocks surged to 71.6%, while decliners dropped to 26%.

This follows Thursday’s weak breadth, where declining stocks outpaced advancers by more than 15 percentage points.

Momentum in Strong Movers (±4%)

6.2% of stocks advanced by 4% or more, versus just 0.7% declining 4%+, a major improvement over the previous day’s 3%/3.1% split.

Moving Average Participation

All key averages improved, especially the longer-term SMA(200), reinforcing the strength of the rally.

New Highs vs New Lows

• New highs (NH): 3.5% (slightly down from 4.2%)

• New lows (NL): 0.4% (down from 0.8%)

While the number of new highs dipped slightly, new lows dropped even more, showing a healthier market with less downside pressure.

Context vs Previous Sessions

This surge in market breadth comes after several sessions of mixed to improving metrics. As noted in our previous analysis:

“There’s cautious improvement in SMA breadth, but weak advancing volume and narrow leadership raise questions about sustainability.”

That question appears to be answered, June 6 saw confirmation across multiple breadth fronts, from SMA levels to explosive breadth in advancing stocks.

It builds upon the early strength seen on June 3 and June 4, forming a strong 3-out-of-4-day rally pattern.

Weekly and Monthly Breadth Outlook

• Advancing stocks over the past week: 70.1%

• Advancing stocks over the past month: 70.4%

These consistent levels near 70% confirm that the rally is more than a one-day wonder, it reflects sustained improvement.

Even the 3-month advancing vs declining measures are now nearly balanced:

• Adv 3-Mo: 50.9%

• Decl 3-Mo: 48.1%

The >25% movers also show improving sentiment:

• Adv >25% (3 Mo): 10.2% (rising)

• Decl >25% (3 Mo): 6.7% (falling)

Visual Insight

The chart below illustrates the sharp rebound in advancing stocks and the corresponding drop in declining stocks over the last 11 sessions.

After the extreme weakness seen on May 28 (23.1% advancers vs 74.2% decliners), breadth has steadily improved, culminating in today’s bullish follow-through.

Conclusion: Strength Confirmed, But Watch Follow-Through

The June 6 session confirms that breadth is not only improving but now supporting the index-level gains we’ve seen in the major averages. The percentage of stocks trading above key SMAs and the volume in strong movers (>4%) add further conviction.

Going into the week of June 9, attention should focus on whether this improved breadth persists and how it reacts to upcoming macro catalysts (e.g., U.S.-China trade talks). Consistent breadth like this typically precedes stronger market trends.

---

Next to read: ChartMill Market Monitor News