S&P 500 down 0.87% — Market Pulse · Aug 20, 2026
U.S. stocks gave back Wednesday’s rebound and closed lower across the board on August 20. The S&P 500 fell 66.82 points, or 0.87%, to 7641.16, the Nasdaq Composite dropped 1.00% to 26067.17, the Dow Jones Industrial Average lost 703.84 points, or 1.32%, to 52759.21, and the Russell 2000 slid 1.34% to 2992.43.
Key Takeaways
- S&P 500 closed down 0.87% at 7,641.16.
- Market breadth finished with 157 advancers, 342 decliners, and a 0.459 advance/decline ratio.
- Energy led sectors at +0.27%, while Health Care lagged at -1.87%.
- VIX ended at 16.01 in the latest five-session lookback.
- SPY’s first resistance is 771.64 and first support is 767.36.
Market Breadth: Broad selloff resumes as volatility rises and market participation weakens
| Metric | Aug 14 | Aug 17 | Aug 18 | Aug 19 | Aug 20 |
|---|---|---|---|---|---|
| Advance/Decline Ratio | 1.062 | 0.361 | 0.832 | 1.346 | 0.459 |
| Advances | 255 | 133 | 227 | 288 | 157 |
| Declines | 240 | 368 | 273 | 214 | 342 |
| Advancing Volume | 51.1% | 27.9% | 43.0% | 61.8% | 28.1% |
| Stocks Near 52-Week Highs | 15 | 11 | 9 | 14 | 5 |
| Stocks Near 52-Week Lows | 1 | 4 | 4 | 1 | 4 |
| % Above 20-Day MA | 63.0% | 55.1% | 49.9% | 50.7% | 42.5% |
| % Above 50-Day MA | 65.8% | 58.3% | 56.9% | 57.3% | 51.1% |
| % Above 200-Day MA | 69.4% | 66.6% | 66.8% | 70.0% | 68.2% |
Market internals softened notably. Decliners beat advancers 342 to 157, for an advance decline ratio of 0.459, while just 28.06% of volume flowed into rising stocks. Participation also looked weaker under the surface, with 44.93% of stocks above their 20 day moving average, 53.48% above the 50 day, and 68.19% above the 200 day. Over the last five sessions, the short-term breadth trend has faded from 63.02% above the 20 day moving average on August 14 to 42.54% in the lookback data for August 20.
Explore the full dashboard: Market breadth.
Market Performance: Major Indexes
| Index | Close | Change | % Change |
|---|---|---|---|
| S&P 500 | 7,641.16 | -66.82 | -0.87% |
| Dow Jones Industrial Average | 52,759.21 | -703.84 | -1.32% |
| Nasdaq Composite | 26,067.17 | -263.92 | -1.00% |
| Russell 2000 | 2,992.43 | -40.51 | -1.34% |
Five-session context:
| Index | Aug 14 | Aug 17 | Aug 18 | Aug 19 | Aug 20 |
|---|---|---|---|---|---|
| S&P 500 | -0.17% | -0.52% | -0.69% | +0.21% | -0.87% |
| Dow Jones Industrial Average | -0.20% | -0.51% | -0.22% | +0.22% | -1.32% |
| Nasdaq Composite | -0.28% | -0.32% | -1.33% | +0.16% | -1.00% |
| Russell 2000 | +0.51% | -0.35% | -1.30% | +0.50% | -1.34% |
The selloff hit all four major indexes, with small caps and blue chips showing the biggest percentage losses. The Russell 2000 fell 1.34% and the Dow dropped 1.32%, both weaker than the S&P 500’s 0.87% decline and the Nasdaq’s 1.00% loss. The five-session picture also remains soft. The S&P 500 has closed lower in four of the last five sessions, moving from 7785.76 on August 14 to 7641.16 on August 20.
Explore the full dashboard: Market snapshot.
Sector View: Leaders and Laggards
- Leaders: Energy (XLE +0.27%), Real Estate (XLRE +0.20%), Materials (XLB -0.19%), Technology (XLK -0.29%), Communication Services (XLC -0.57%)
- Laggards: Health Care (XLV -1.87%), Consumer Discretionary (XLY -1.61%), Consumer Staples (XLP -1.41%), Industrials (XLI -1.20%), Financials (XLF -0.92%)
Leadership turned defensive and narrow. Energy rose 0.27% and Real Estate added 0.20%, while Materials slipped only 0.19% and Technology lost a modest 0.29%. On the downside, Health Care fell 1.87%, Consumer Discretionary dropped 1.61%, Consumer Staples lost 1.41%, Industrials fell 1.20%, and Financials declined 0.92%. That mix points to broad pressure rather than weakness isolated to one growth-heavy pocket.
Explore the full dashboard: Sector performance.
Volatility: VIX and ETF Implied Volatility
| Metric | Aug 14 | Aug 17 | Aug 18 | Aug 19 | Aug 20 |
|---|---|---|---|---|---|
| VIX Level | 14.25 | 15.19 | 15.84 | 14.89 | 16.01 |
- SPY IV: 11.54% (Low)
- QQQ IV: 18.01% (Normal)
- IWM IV: 14.11% (Low)
- DIA IV: 12.10% (Low)
Volatility picked up, but not to stressed levels. The VIX closed at 16.01 after finishing at 14.89 the prior session, a 7.52% daily increase in the five-session lookback. Even so, major ETF implied volatility stayed contained by recent standards, with SPY average IV at 11.54%, IWM at 14.11%, DIA at 12.10%, and QQQ at 18.01%.
Explore the full dashboard: Volatility.
Headlines Moving Markets
The policy backdrop stayed active. The Federal Reserve released minutes from the July 28 to 29, 2026 FOMC meeting on August 19, and on August 20 the Federal Reserve Board announced approval of an application by National Westminster Bank Plc while also issuing and terminating several enforcement actions involving banks. In the broader economic backdrop, second-quarter 2026 real GDP increased at an annual rate of 1.5%, down from 2.1% in the first quarter, while June personal income rose 0.2% and personal consumption expenditures increased 0.3%.
- Federal Reserve Board issues enforcement action with SouthPoint Bancshares, Inc. and announces termination of enforcement action with Deutsche Bank AG, DB USA Corporation, and Deutsche Bank AG New York Branch
- Federal Reserve Board announces approval of application by National Westminster Bank Plc
- Federal Reserve Board issues enforcement actions with former employee of Regions Bank and former employee of United Community Bank
- Minutes of the Federal Open Market Committee, July 28–29, 2026
- Personal Income and Outlays, June 2026
- GDP (Advance Estimate), 2nd Quarter 2026
- Federal Reserve issues FOMC statement
- Gatekeeping bots, piles of slop: Welcome to the age of AI weirdness at work
- US will impose ‘toughest sanctions in history’ on Iran, Bessent says - Reuters
- Bessent says US will impose toughest ever sanctions on Iran, urges China to cooperate - Reuters
- US hits Hezbollah with fresh sanctions, emphasizing ties to Iranian government - Reuters
- Trump threatens to isolate Iran. Who are its trading partners? - Reuters
Technical Snapshot (SPY)
| Level | Aug 14 | Aug 17 | Aug 18 | Aug 19 | Aug 20 |
|---|---|---|---|---|---|
| 20-day SMA | 754.50 | 756.15 | 757.67 | 758.64 | 759.72 |
| 50-day SMA | 748.03 | 748.51 | 748.86 | 749.50 | 750.13 |
| 200-day SMA | 702.23 | 702.71 | 703.17 | 703.59 | 704.07 |
Near-term pivot structure, based on 2026-08-19:
- Resistance: 771.64 (R1), then 774.20 (R2)
- Pivot: 769.91
- Support: 767.36 (S1), then 765.63 (S2)
SPY technical levels offer a useful map after the latest pullback. Using the August 19 reference date, the traditional pivot sits at 769.91, with support at 767.36 and 765.63, and resistance at 771.64 and 774.20. Longer trend measures still point higher: SPY’s 20 day, 50 day, and 200 day simple moving averages stand at 759.72, 750.13, and 704.07, respectively, and each has been rising over the last five sessions.
Explore the full dashboard: Support & Resistance levels.
What to Watch Next
- Whether the S&P 500 can stabilize after four down closes in the last five sessions, ending at 7641.16.
- Breadth follow-through, especially if advancing volume remains near 28.06% instead of recovering toward the 61.76% seen on August 19.
- SPY around pivot support, with 767.36 and 765.63 the nearby levels from the traditional pivot map.
- VIX behavior after the move to 16.01.
- Sector leadership if Energy at 63.75 and Real Estate at 45.08 continue to resist a broader tape that pushed Health Care down 1.87%.
- Options tone remains worth tracking. Overall whale positioning was bullish over the last five trading days, with $142,649,813 in call premium versus $77,020,504 in put premium, even as cash equities weakened Thursday.
Bottom Line
Thursday’s session looked like a broad reset after Wednesday’s bounce, with weaker breadth, lower indexes, and a higher VIX all moving in the same direction. Longer-term participation remains better than short-term participation, so the next read likely depends on whether breadth and volume rebound quickly or continue to erode.
Market Pulse provides daily analysis of S&P 500 market breadth, sector rotation, and volatility signals to help investors understand what’s happening beneath the surface. Data sourced from our real-time market breadth collectors. For personalized planning, explore our retirement calculators, investment tools, and FIRE planning resources.
Disclaimer: Nothing here is investment advice or a recommendation to buy or sell any security. This content is for educational purposes only. It is not an offer or a solicitation nor is it tax or legal advice. It does not consider your financial circumstances and objectives and may not be suitable for you. You should not rely on this information without independent verification or professional advice. No client relationship or fiduciary duty is created by viewing or using this content. Investments involve risk, including the possible loss of principal.
Wes Dean
Co-Founder & Chief Technology Officer
Dean Financials
Wes brings over 25 years of IT industry experience combined with a lifelong passion for financial markets. An active stock market investor since high school, he developed the proprietary market breadth and volatility analysis systems that power Dean Financials' data dashboards. Wes's unique combination of software engineering expertise and deep market knowledge enables him to create sophisticated yet accessible tools for analyzing market conditions and making data-driven investment decisions.
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