Today's number is... 3

The relative ratio of the Consumer Staples versus the S&P 500 has reached a new three-month high.

Here’s the chart:

Let's break down what the chart shows:

• The blue line in the top panel shows the relative ratio of S&P 500 Consumer Staples versus S&P 500 Index.
• The green and red lines in the bottom panel represent the 14-period daily Relative Strength Index (RSI) for the ratio above. When the line is green it indicates that the ratio is in a bullish regime, while when the line is red it signifies a bearish regime.

The Takeaway: When I’m looking for evidence that market participants are taking defensive positions, the ratio of Consumer Staples to the S&P 500 offers valuable insight.

And right now, I am seeing some of that defensive rotation.

The landscape for one of my favorite risk-on/risk-off ratios has changed considerably. Let me break it down! 

- It has broken out of a short-term bearish-to-...

Today's number is... 55%

Only 55% of S&P 500 stocks are in strong uptrends.  

Here’s the chart:

Let's break down what the chart shows:

• The blue line in the top panel shows the price of the S&P 500 index.
• The black line in the bottom panel represents the percentage of S&P 500 stocks with a 50-day moving average greater than its 200-day moving average.

The Takeaway: In a healthy bull market, the 50-day and 200-day averages typically move in the same direction, with the 50-day average positioned above the 200-day average. 

Looking beneath the surface, only 55% of S&P 500 stocks show strong upward trends. The trend of this breadth indicator has been declining throughout this year and has now fallen back to levels seen at the beginning of 2024. This suggests that there is an underlying weakness in the market, which could pose further downside price action at an index level if the bulls do not address this issue.

Small cracks can also be seen at the index level. Although the S&P 500'...

Today's number is... 1

Last week, the bears demonstrated that they are still active, with one-month lows for the S&P 500, 400, and 600 started to expand.

Here’s the chart:

Let's break down what the chart shows:

• The blue line in the top panel is the S&P 500 index price.
• The black line in the second panel shows the percentage of S&P 500 stocks making one-month lows.
• The red line in the third panel shows the percentage of S&P 400 stocks making one-month lows.
• The gray line in the bottom panel shows the percentage of S&P 600 stocks making one-month lows.

The Takeaway: On Friday, all major indices fell by over 1.5%. This was a show of force from the bears. With this widespread weakness, we observed one-month new lows rising across all market capitalizations.

While the overall evidence still suggests a bullish trend, Friday marked a possible turning point...

Today's number is... 496

The S&P 500 Technology Sector has been in an uptrend for the past 496 trading days.

Here’s the chart:

Let's break down what the chart shows:

• The dark blue line in the top panel represents the S&P 500 Technology Sector price. The light blue line represents the 50-day moving average, while the red line shows the 200-day moving average of the S&P 500 Technology Sector.
• The black bars in the bottom panel indicate days when the 50-day average is greater than the 200-day average.

The Takeaway: There are many ways to define an uptrend. One very simple yet effective method is to check whether its 50-day moving average is above its 200-day moving average.

The S&P 500 Technology Sector's trend has been higher for the past 496 trading days. This current uptrend is actually the fourth longest we have seen in the Sector over the past three decades. 

Despite some underperformance from the sector more recently, the S&P 500 Technology Sector...

Today's number is... 15

My custom Equal Weight Bellwether Stock Index, comprising 15 components, has reached year-to-date highs.

Here’s the chart:

Let's break down what this table shows:

• The blue line is our custom Equal Weight Bellwether Stock Index price, and the stocks within the index are Alcoa, Apple, AMD, Amazon, Boeing, Caterpillar, Walt Disney, FedEx, General Electric, General Motors, Johnson & Johnson, JPMorgan Chase, McDonald's, Walmart and Exxon Mobil. 

The Takeaway: Bellwether stocks are large, well-established, and widely followed companies. These 15 stocks act as an excellent barometer for the stock market as a whole, and in healthy bull markets, bellwether stocks usually move upwards, and that’s exactly what's been happening for the past 2.5 years.

These 15 stocks give us valuable insights into whether overall market conditions are shifting. Currently, this index continues to rise steadily and has been consolidating in a constructive manner. Until we observe a change in this pattern, we should maintain...

Today's number is... 587

With the S&P 500 index reaching a new all-time high yesterday, this current bull market has persisted for the past 587 trading days.

How much longer can this run continue? 

Here is the table:

Let's break down what this table shows:

• The green box represents all of the bull markets dating back to 1950. A bull market is defined as a rally of 20% or more that follows a drop of 20% or more.
• The red box represents all of the bear markets since 1950. A bear market is defined as a drop of 20% or more that follows a rally of 20% or more.

The Takeaway: There is nothing more bullish than hitting all-time highs.

Yesterday's all-time high marks the second all-time high for the S&P 500 index in 2025. Over the last 587 trading days, this bull market has delivered a remarkable return of 71.4%. However, it’s important to note that the average bull market lasts around 1,138 trading days and typically achieves a return of 153%. Consequently, this bull market, while strong, is still below the...

Today's number is... 86%

The percentage of world markets above their 50-day moving average has surged to 86%. But how strong are these trends?

Here’s the chart:

Let's break down what the chart shows:

• The black line shows the percentage of world markets above their 50-day average.
• The red line shows the percentage of world markets that have a 50-day average greater than their 200-day average. 

The Takeaway: The key development here is that global breadth is improving, which is typically supportive of US stocks. Currently, the percentage of world markets above their 50-day moving average has reached its highest level since September of last year. This recent increase in global breadth readings suggests that the underlying short-term strength in the market is healthy, potentially presenting short-term opportunities. 

While this is a promising starting point for world markets, the overall trend strength of most world markets remains weak. To clarify how I identify a strong uptrend: is when the 50-day moving average is above the...

Today's number is... 38.8

Bearish market sentiment continues to rise, with our Average Bears indicator reaching 38.8 last week. Meanwhile, the S&P 500 index achieved a weekly all-time high... Things that make you go, hmmm.

Here’s the chart:

Let's break down what the chart shows:

• The blue line in the top panel represents the price of the S&P 500 index.
• The light red line in the middle panel shows the S&P 500 index 52-week drawdown.
• The dark red line in the bottom panel shows the average bears from the Investors Intelligence (II) and the American Association of Individual Investors (AAII).

The Takeaway: An increasing number of bears have entered the market, this is illustrated by our average bear indicator, which has risen to its highest level since March 2023. Typically, when we see this many bears in the stock market, we are somewhere in the midst of a market drawdown. However, by the close of trading on Friday, the S&P 500 index finished the week at new all-time highs. 

...

Today's number is... 22

The relative ratio of Home Construction vs S&P 500 has fallen to its lowest level in 22 months.

Here’s the chart:

Let's break down what the chart shows:

• The blue line shows the relative ratio of the Home Construction Index $ITB vs S&P 500 $SPY

The Takeaway: One group that has been under selling pressure lately has been Home Construction, and we can highlight this weakness in a relative ratio versus the broader market.

Home Construction is one of the most crucial industry groups in America, as these stocks are highly cyclical. They act as an excellent gauge for growth and often act as a leading indicator for the broader market. 

Typically, when home construction stocks are trending higher, it's happening in an environment conducive to risk-seeking behavior. Right now, that is not the case, as this relative ratio is at its lowest level in 22 months. 

This does not bode well for risk assets, and if we're really in an environment where risk assets are trending higher and bulls are in control,...

Today's number is... 43

Global participation is expanding, with the majority of the 43 global ETFs I track are now above their shorter-term moving averages.

Here’s the table:

Let's break down what the table shows:

Each row in the table represents a developed or emerging market country ETF. The columns indicate the percentage by which each country is above or below its key moving averages, starting with the 10-day moving average and progressing up to the 200-day moving average.

The Takeaway: The improvement seen over the past few weeks is not just limited to the US. The percentage of global markets moving back above key short-term averages has been increasing throughout 2025, with the leadership primarily coming from the 22 developed markets. While these shorter-term trends have been strengthening beneath the surface, the shift at the index level has only recently begun.

These kinds of improvements in market breadth could establish a strong foundation for a sustained global rally. However, for me to believe that this recent run-up has lasting potential, I need to see the leadership...

Today's number is... 10

10 out of the 11 sectors in the S&P 500 are currently above their 50-day moving average.

Here’s the chart:

Let's break down what the chart shows:

• The blue line in the top panel shows the price of the S&P 500 index.
• The black line in the bottom panel shows the number of S&P 500 sectors above their 50-day Average.

The Takeaway: In early January of this year, all sectors were below their 50-day moving average. However, over the past 21 trading days, this breadth reading has steadily improved, with 10 out of the 11 sectors now above their 50-day moving averages. This is the highest level we've seen since late November of last year.

The only sector that remains below its 50-day moving average is Consumer Discretionary. This weakness in the Consumer Discretionary sector can be largely attributed to the decline of Tesla, which has recently experienced a sharp drop in price. 

The S&P 500 typically does not encounter significant challenges when most sectors are above their 50-...

Today's number is... 75%

Currently, 75% (6 out of 8) of the indicators on my 2025 Bull Market Checklist are within their bull market zone. This suggests a healthy-ish bull market, creating a favorable backdrop for stocks.

Here is the table:

About the Table: This checklist combines various factors such as price, trends, momentum, breadth, sentiment & environmental models. Its purpose is to highlight turns toward risks or opportunities in the market.

This checklist was created to have a bird’s eye view rather than focusing on just one area of the market.

This high-level perspective will guide us in understanding the current market environment before allocating capital.

Please note that this checklist is not intended to serve as a trading signal; rather, it functions as a gauge of the current trading environment.

The Takeaway: The bulls appear to be re-entering the market to regain control. This week, my checklist has progressed further into the bullish zone, with the percentage of global markets moving above their 50-day average...