What are the key threshold levels for % stocks above 200-day MA?

Above 70%: broad bull market health, momentum strategies work well. 50–70%: mixed market, be selective. 30–50%: deteriorating conditions, defensive posture warranted. Below 30%: bear market internals, capital preservation is the priority. These thresholds are practical reference zones, not mechanical signals — they provide context for the environment rather than precise entry/exit triggers.

June 11, 2026·6 min read·By WideRadar

What the % of Stocks Above Their 200-Day MA Tells You

Q: What does the percentage of stocks above their 200-day moving average measure?

It measures the share of stocks in the equity universe that are trading above their 200-day simple moving average — the most widely watched long-term trend indicator in institutional equity management. When this percentage is high (above 70%), the broad market is structurally healthy. When it drops below 30%, the majority of stocks are in downtrends and long-only exposure should be minimal.

The percentage of stocks trading above their 200-day moving average is one of the most reliable structural breadth indicators. Here's how to read it, what levels matter, and how it fits in a daily routine.

Price can be deceiving. An index can reach new highs while a growing share of its components quietly break down beneath their long-term moving averages — until the weight of that internal deterioration finally drags the index itself lower. The percentage of stocks above their 200-day moving average is one of the cleanest ways to measure that internal structural health in real time.

Why the 200-day MA matters

The 200-day simple moving average (SMA) is the most widely tracked long-term trend indicator in professional equity management. Institutional investors, fund managers, and systematic strategies all reference it as a dividing line between stocks in long-term uptrends (above the 200d) and those in long-term downtrends (below it).

Because it's so widely watched, the 200-day MA becomes a self-fulfilling reference: when a stock reclaims its 200d after a correction, buying interest tends to increase; when it breaks below, selling pressure often intensifies. Counting how many stocks in the universe are above vs. below this line gives a real-time read on the overall structural condition of the market.

Key threshold levels

The % above 200-day MA oscillates between extremes that correspond to different market regimes:

Above 70% — Broad bull market health. Most stocks are in confirmed uptrends. Momentum strategies work well. Don't fight the tape.
50–70% — Mixed market. More than half the universe is in uptrends but the margin is shrinking. Be selective; sector rotation matters more.
30–50% — Deteriorating conditions. Fewer than half the universe is in confirmed uptrends. Defensive posture makes sense; only the strongest setups are worth pursuing.
Below 30% — Bear market internals. The majority of stocks are in downtrends. Capital preservation is the priority; long-only exposure should be minimal or hedged.

Using it alongside the 50-day MA reading

The WideRadar Breadth tab tracks both the % above 50-day and the % above 200-day MA. The two together tell a more complete story:

% above 50d rising, % above 200d steady — Short-term recovery within a structurally intact market. Bullish.
% above 50d rising, % above 200d still declining — A bounce within a broader downtrend. The short-term improvement may not stick.
% above 50d falling, % above 200d declining — Broad, multi-timeframe deterioration. Highest-risk environment for long positions.
% above 50d recovering sharply (thrust-like) after both were low — A potential breadth thrust in formation; watch for continuation over the following 1–2 weeks.

Sources & References