The equal-weight $SPY is lagging the market-cap weighted version by the widest gap in over 24 years.
What this tells us: concentration risk is at extreme levels. A handful of mega-caps are carrying the entire index while the average stock is getting left behind.
This kind of divergence doesn't last forever. Either the leaders pull back or the laggards catch up. History says both usually happen, just not at the same time.
If you're only tracking the headline $SPY number, you're missing how narrow this rally really is.
What this tells us: concentration risk is at extreme levels. A handful of mega-caps are carrying the entire index while the average stock is getting left behind.
This kind of divergence doesn't last forever. Either the leaders pull back or the laggards catch up. History says both usually happen, just not at the same time.
If you're only tracking the headline $SPY number, you're missing how narrow this rally really is.
