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Just 28 percent of S&P 500 stocks are currently trading above their 50-day moving average, according to Phil Rosen. This figure stands at half the historical average for the index.
Rosen also notes that short-term momentum has broken down across every size stock in the market, reflecting broad-based weakness in recent performance metrics.
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Rosen has previously highlighted that the S&P 500 has on average reached its lowest point of the year on March 12 over the past 20 years. In another note, he compared current equity valuations by pointing out that Nvidia’s forward P/E sits at 20.9, well below Cisco’s 130.3 during the dot-com era. These observations provide historical context to the recent breakdown in short-term momentum.