Andrew@CANSLIM RESEARCHThe S&P 500 has barely moved since mid-August, yet the percentage of stocks trading above their 200-day moving average has fallen sharply. This divergence between index stability and internal weakness is the defining feature of the current tape.
The Story So Far
Between August 18 and September 8, the S&P 500 drifted from 7,691.76 to 7,673.94, a decline of just 0.2%. Breadth told a different story: T2108 fell from 47.9 to 36.4, a drop of 11.5 points, with the first breach of the 50 level occurring on the very first day of the window. The picture deteriorated further on August 28, when the 5-day up/down ratio first fell below 1.0 — sellers taking control — and T2108 broke below 40 on August 31. A brief stabilization followed in early September, but the latest session saw the ratio slip back to 1.13 with decliners outpacing advancers among 4% movers, 321 to 269.
Reading Today’s Signals
Today’s 4% mover count of 269 up versus 321 down, combined with a 5-day ratio of 1.13 and a 10-day ratio of 1.09, indicates that buying pressure has not fully collapsed but remains tentative. A T2108 reading of 36.4 places the market in the lower half of the normal 30-70 band, suggesting that while conditions are not oversold, the pool of stocks participating in the rally has thinned considerably. No historical match was found in the loaded data for a comparable T2108 level at this index price; the nearest prior session was June 3, when T2108 stood at 39.3 with the S&P at 7,553.68.
Divergence Check
The index and breadth are clearly diverging: the S&P 500 is essentially unchanged while T2108 has fallen nearly a quarter. This implies that a handful of large-cap names are masking broader distribution beneath the surface.
Recent Trend
| Date | S&P 500 | T2108 | 5-day ratio | Up4% / Down4% |
|---|---|---|---|---|
| 09/08 | 7,673.94 | 36.4 | 1.13 | 269 / 321 |
| 09/04 | 7,718.60 | 41.1 | 1.18 | 197 / 110 |
| 09/03 | 7,747.71 | 41.1 | 0.79 | 251 / 112 |
| 09/02 | 7,666.60 | 39.1 | 0.81 | 290 / 96 |
| 09/01 | 7,631.47 | 36.4 | 0.66 | 114 / 356 |
| 08/31 | 7,686.14 | 39.2 | 1.05 | 132 / 158 |
| 08/28 | 7,711.23 | 41.9 | 0.98 | 84 / 382 |
| 08/27 | 7,728.65 | 45.2 | 1.76 | 298 / 145 |
| 08/26 | 7,676.31 | 45.1 | 1.31 | 155 / 138 |
| 08/25 | 7,676.62 | 45.8 | 1.69 | 293 / 93 |
| 08/24 | 7,652.86 | 45.9 | 1.21 | 142 / 238 |
| 08/21 | 7,674.37 | 45.7 | 1.18 | 332 / 79 |
| 08/20 | 7,641.16 | 45.0 | 1.04 | 146 / 269 |
| 08/19 | 7,707.98 | 48.5 | 1.31 | 556 / 190 |
| 08/18 | 7,691.76 | 47.9 | 1.10 | 167 / 335 |
Desk Verdict
Yellow. The yellow verdict reflects a market that is neither clearly healthy nor broken. The 5-day ratio of 1.13 sits within the neutral 0.5-1.5 band, T2108 at 36.4 remains in the normal 30-70 range, and quarterly breadth is roughly balanced at 1,302 advancers versus 1,059 decliners among stocks moving 25% or more.
Stage, pattern and sentiment labels are generated by rule-based approximations (Weinstein stage analysis, Minervini trend template and heuristic pattern detection), not by precise technical analysis. Data as of September 09, 2026. For informational and educational purposes only — not investment advice. Always verify against primary sources before making any investment decision. This analysis draws on Pradeep Bonde’s Stockbee Market Monitor framework and CANSLIM Research’s daily data. It describes current market conditions and is not personalized investment advice.
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