A stark divergence has emerged between the internal technical health of the cryptocurrency market and the U.S. equity benchmark. While the S&P 500 hovers near record territory, roughly half of its constituents are struggling to stay above a key long-term trend indicator. In contrast, the vast majority of major digital assets are trading comfortably above the same measure.

Data shared by analyst Scott Melker on X shows that 257 companies in the S&P 500 were trading below their 200-day moving averages as of Wednesday. That leaves approximately 49% of the index above the widely tracked trend line. Melker described the equity market’s internal condition as bearish even as the headline index sits close to all-time highs.

The 200-day moving…