% of stocks above 50-day MA
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Definition
Percentage of index constituents trading above their 50-day moving average, a medium-term breadth gauge of how broadly participation supports a trend.
How to read it
This counts what share of stocks in an index sit above their own 50-day moving average. It measures the breadth of a medium-term uptrend: readings above ~80% show broad participation (strong but potentially overbought), while readings below ~20% show washed-out selling (potentially oversold). The most valuable use is spotting divergences, where an index makes a new high while the percentage above the 50-day fails to confirm, warning that fewer stocks are carrying the advance.
How practitioners use it
Used as context among multiple indicators — never as a standalone signal to act.
Less common professional uses
Bearish breadth divergence at tops is the marquee use: a shrinking percentage above the 50-day while the cap-weighted index rises means a narrowing group of leaders is masking internal deterioration. The 50-day gauge whipsaws in choppy, range-bound tape; pair it with the slower 200-day version to separate medium-term noise from a durable participation shift. Equal-weight vs cap-weight matters: this indicator is inherently equal-weighted (each stock counts once), so it can diverge sharply from a mega-cap-driven index, which is the point but also a source of false 'weakness' when leadership is legitimately concentrated. Extreme high readings are not automatic sell signals; the strongest breadth thrusts (breadth reaching 90%+ from a low) have historically preceded durable rallies, so context (thrust vs stall) is everything. Constituent changes (index rebalances, additions/deletions) shift the denominator and can create small artificial jumps.
Sources & provenance
Index constituent prices vs 50-day moving averages (exchange EOD data)
This page is educational content published by Pachira Aquatica Global LLC. It is not investment advice and not a recommendation.