Breadth: Interpretation of Market Conditions

Research Notes For 26 to 30 May >

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To help interpret underlying market conditions, we compare the market breadth for changes between the end of day on Friday, 16 May 2025, and the end of day on Friday, 23 May 2025:

• The number of constituents in the 'Overbought' category has increased from 3 to 6.

• The number of constituents with 'High Bullish Momentum / Approaching Overbought' has decreased from 13 to 5.

• The number of constituents rated 'Strong' has decreased from 37 to 29.

• The number of 'Neutral' constituents has slightly increased from 33 to 35.

• The number of 'Weak' constituents has increased significantly from 16 to 26.

• The 'High Bearish Momentum / Approaching Oversold' category remains at 0.

• The 'Oversold' category, which had 0 constituents on 16 May, now has 1 constituent.

  
  

Overall, the readings indicate a shift from a more bullish leaning market on 16 May towards a more bearish sentiment by 23 May. There is an increase in the number of weaker performing constituents and a decrease in those with strong bullish momentum. The appearance of a constituent in the 'Oversold' territory might suggest a near-term buying opportunity for that specific constituent, while the increase in 'Overbought' constituents could represent potential selling opportunities for those specific stocks.

Lester Davids

Senior Investment Analyst: Unum Capital