Andrew@CANSLIM RESEARCHThe S&P 500 sits just 0.6% below its 2026-09-03 level, yet the percentage of stocks above their 40-day moving average has collapsed by more than half over the same 21-session window. The index is treading water while the underlying participation narrows sharply.
The Story So Far
The picture began deteriorating on 2026-09-03, when the 5-day ratio first fell below 1.0 and T2108 first dropped under 50. T2108 then broke below 40 on 2026-09-08, and the decline continued almost without interruption through 2026-09-24, when it reached 19.9. The S&P 500, by contrast, briefly recovered to 7,764.70 on 2026-09-21 before slipping back to 7,703.00.
Reading Today’s Signals
Today’s 4% movers show 150 up against 234 down, with the 5-day ratio at 0.88 and the 10-day ratio at 0.95 — both in the neutral 0.5-1.5 band but leaning toward sellers. T2108 at 19.9 is below 30, a washed-out reading. The most recent earlier session with a comparable T2108 in the loaded data was 2026-03-30, when T2108 stood at 19.5 alongside an S&P 500 of 6,343.72.
Divergence Check
The index and breadth are diverging: the S&P 500 has moved only -0.6% over the window while T2108 has fallen 21.2 points, or 51.5%. That implies the advance is being carried by a shrinking group of stocks rather than broad participation.
Recent Trend
| Date | S&P 500 | T2108 | 5-day ratio | Up4% / Down4% |
|---|---|---|---|---|
| 09/24 | 7,703.00 | 19.9 | 0.88 | 150 / 234 |
| 09/23 | 7,706.03 | 20.5 | 1.25 | 104 / 388 |
| 09/22 | 7,764.64 | 24.6 | 1.53 | 328 / 179 |
| 09/21 | 7,764.70 | 23.2 | 1.11 | 146 / 81 |
| 09/18 | 7,650.50 | 23.9 | 0.97 | 253 / 235 |
| 09/17 | 7,637.76 | 26.4 | 1.01 | 382 / 88 |
| 09/16 | 7,551.81 | 24.5 | 0.64 | 166 / 250 |
| 09/15 | 7,585.73 | 27.5 | 0.57 | 134 / 316 |
| 09/14 | 7,619.98 | 29.6 | 0.66 | 281 / 365 |
| 09/11 | 7,656.98 | 30.9 | 0.73 | 200 / 130 |
| 09/10 | 7,591.70 | 28.8 | 0.79 | 99 / 304 |
| 09/09 | 7,636.36 | 32.0 | 1.16 | 98 / 310 |
| 09/08 | 7,673.52 | 36.4 | 1.12 | 270 / 325 |
| 09/04 | 7,718.60 | 41.1 | 1.18 | 197 / 110 |
| 09/03 | 7,747.71 | 41.1 | 0.79 | 251 / 112 |
Desk Verdict
Red. The verdict is Red because quarterly breadth favors sellers at 976 stocks up 25%+ versus 1,286 down 25%+, and T2108 at 19.9 is below 30. The 5-day ratio at 0.88 sits in the neutral 0.5-1.5 band, offering no offset to the weak breadth readings.
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 25, 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.
Discover more from CANSLIM Research
Subscribe to get the latest posts sent to your email.
