Tue, Sep 2, 2025|Brett Eversole

Stop Worrying Whether This Bull Market Is Over

Can I trust this bull market?

Investors can't stop asking themselves that question. Not just today... but always.

Bull markets climb a Wall of Worry. You can always find a reason to fear that the boom is over – and you often don't have to look very far.

This year, we saw a quick and painful drop in stocks, followed by an equally quick and even larger recovery. Stocks have soared back to new highs in recent months. Still, worries abound.

It'd be tough to argue that the global economy is doing better than it was eight months ago... Yet, here we are, paying a higher price for stocks.

That's a tough pill to swallow. It feels impossible. You might be wondering whether this rally can last... and if, or when, you should put money to work.

These worries raise that age-old question: Can we trust this bull market?

I understand if you're concerned about where we are today. But two key indicators show that the market is strong right now. And that tells us the rally can – and likely will – continue...

Two Reasons We Know Stocks Are Healthy Right Now

My favorite indicator of market health is the advance/decline line of the New York Stock Exchange. This indicator takes the number of winning stocks minus the number of losers each day. Then, it adds today's total to yesterday's and builds a cumulative data series.

When the advance/decline line is rising, that means more stocks are rising than falling. And it's a simple, effective way to gauge market health.

This indicator is in a great place today. The advance/decline line has been breaking out to new highs for months. Take a look...

Even better, the advance/decline line first hit a new high in May – well ahead of the broad market. The S&P 500 Index didn't break out to a new high until the end of June. This confirms that most stocks are performing well... and that the boom is healthy.

To see this another way, let's look at the S&P 500 Equal Weight Index. This comprises the same stocks as the typical S&P 500. But instead of weighting them based on market cap, it holds each equally.

That means heavy hitters like Nvidia (NVDA) and Microsoft (MSFT) each have a small 0.2% weight. That's far smaller than the 7.3% and 6.5% they each carry in the normal index.

By looking at the equal-weight index, we can see whether most stocks are rallying... or if the big guys are carrying the market higher.

The good news is that the equal-weight index recently broke out to new highs. Take a look...

The equal-weight index was behind the S&P 500 in the post-tariff rally. That was a somewhat worrying sign. But now, things have changed. The equal-weight index broke out to a new high earlier this month.

When you put these two indicators together, the answer to investors' concerns is clear...

This isn't an unhealthy boom. More stocks are rising than falling. And the market is rising and breaking out... even in the equal-weight index.

So, I get the fear. I understand the concerns. But this is a time when you want to stop worrying and start following the data.

In other words – yes, we can trust this bull market.

Good investing,

Brett Eversole

Stop Worrying Whether This Bull Market Is Over

Two Reasons We Know Stocks Are Healthy Right Now

Further Reading