Is the Market Quietly Bottoming?
Fewer new lows and improving participation challenge the bearish narrative, yet structure remains fragile.
This Market Breadth Update tracks the internal dynamics of the New York Stock Exchange (NYSE), the largest and broadest equity market in the world. It reflects the behavior of over 2,000 listed stocks, not just the S&P 500, offering a deeper view of overall market participation and underlying momentum.
Positioning:
As per 2025-10-03 Market closing data the portfolio bias remains NEUTRAL with downside risk not confirmed, based on the last five trading sessions. NYSI ( McClellan indicator ) declined for five consecutive sessions while new highs stayed below the 300 expansion threshold and volatility remained neutral; however, new lows compressed and NYAD ( Advance Decline ) breadth ended strongly positive, limiting downside confirmation.
Confirmation would require 2–3 consecutive sessions with NYSI
stabilizing and turning higher, NYHGH ( 52 week highs) pushing toward 200 or more, and NYLOW ( 52 weeks lows ) remaining below 40; deterioration with NYSI dropping below 0 alongside a rising VIX would confirm a downside break.
For LONGS: Focus on positions above the 200/150 SMA, confirming support, and prioritize industries with a High ImGeld Industry Score rating.
For SHORTS: Focus on positions below the 200/150 SMA, rejecting resistance, and prioritize industries with a Low ImGeld Industry Score rating.
Remember, fundamentals account for 80% of each decision, while 20% comes from technical analysis and technical setup, timing matters. ImGeld Subscribers can access a full set of technical indicators for each stock selected after passing the fundamental analysis screening.
Global Read
As per 2025-10-03 closing data, internal momentum has been eroding as the McClellan Summation Index stepped down each day, yet overall participation proved resilient with net advances positive in three of five sessions and a strong finish on Friday. New 52-week highs in the 120–160 range show leadership is present but not surging, while 52-week lows are subdued and fell sharply on the latest session. Volatility remains neutral in both VIX and RVX, signaling a contained risk backdrop. Over the next 3–8 weeks, this mix favors range-bound indices with rotational leadership and shallow pullbacks unless lows expand materially and NYSI rolls below zero.
Market Breadth Summary (Last Five Sessions):
