Market Breadth Falls to 3-Month Low
The percentage of U.S. stocks trading above their 100-day moving average (100MA) has dropped to its lowest point in three months, signaling a potential weakening in the broader market’s momentum. While the major indices may still appear healthy on the surface, this divergence reveals that most of the rally is being driven by just a few large-cap stocks.
This type of narrow market participation often raises red flags for analysts and investors. When only a handful of stocks are doing the heavy lifting, it suggests that underlying market strength is fading, despite impressive headline gains.
MAG7 Stocks Continue to Dominate
The market’s recent gains are largely being fueled by the “MAG7” stocks—Meta, Apple, Google, Microsoft, Amazon, Nvidia, and Tesla. These tech giants have seen outsized returns, propping up indexes like the S&P 500 and Nasdaq, while the average stock remains under pressure.
This dynamic creates a skewed picture: indexes look bullish, but the majority of stocks are lagging, unable to reclaim or maintain key technical levels like the 100MA. It’s a sign that the rally isn’t broad-based, making it more vulnerable to reversals if the MAG7 starts to cool off.
The percentage of U.S. stocks trading above their 100MA is at a three-month low.
— Crypto Rover (@cryptorover) November 4, 2025
Most gains are driven by the MAG7, which could explain why crypto isn’t catching up as much. pic.twitter.com/PisNFUcDhp
Why Crypto Isn’t Catching Up
This narrow equity rally may also explain why crypto markets are lagging behind. Typically, strong breadth in equities—where a majority of stocks are rising—signals healthy risk appetite that can extend into crypto. But when only a few names are winning, risk-on sentiment isn’t as widespread, making it harder for alternative assets like Bitcoin and altcoins to gain momentum.
For now, crypto investors remain cautious. Until the stock market breadth improves, and more traditional assets show strength across the board, we may not see a significant crypto breakout.