Last week the S&P 500 broke below its bull market trendline.
This is definitely cause for concern. Since mid-May 2025, this trendline has served as critical support for stocks. So, the fact that the market actually broke this line (even temporarily) is a warning sign that things are deteriorating for this bull market.
Indeed, while the S&P 500 managed to eke out several new all-time highs in October, “under the hood” breadth has gone nowhere for over two months. This signals that this bull market is being driven by fewer and fewer companies.
