Everyone is waiting for the S&P 500 to plunge 20% before declaring a bear market. But many individual stocks may have already completed a correction.
On October 19, the S&P 500 closed at 7,690.73. Morgan Stanley noted that since mid-August, quality stocks have risen about 6%, while the equal-weight S&P 500 has fallen about 4%. The index’s performance masks an internal correction. What’s really worth watching is whether heavyweight stocks now catch down or lagging stocks catch up.
Trading focus: Compare the relative performance of $SPY and $RSPG.ETF , the percentage of constituents trading above their 200-day moving averages, and earnings expectations for leading tech stocks.
When market breadth continues to recover and the equal-weight S&P 500 starts to outperform, it may signal that the internal correction is over.
A new rally is about to begin! #SPY #S&P500Breaks7800ForTheFirstTimeAndHitsRecordHigh
On October 19, the S&P 500 closed at 7,690.73. Morgan Stanley noted that since mid-August, quality stocks have risen about 6%, while the equal-weight S&P 500 has fallen about 4%. The index’s performance masks an internal correction. What’s really worth watching is whether heavyweight stocks now catch down or lagging stocks catch up.
Trading focus: Compare the relative performance of $SPY and $RSPG.ETF , the percentage of constituents trading above their 200-day moving averages, and earnings expectations for leading tech stocks.
When market breadth continues to recover and the equal-weight S&P 500 starts to outperform, it may signal that the internal correction is over.
A new rally is about to begin! #SPY #S&P500Breaks7800ForTheFirstTimeAndHitsRecordHigh
