🏆 Today's Chart of the Day was shared by Bespoke (@bespokeinvest).
- The S&P 500 rose for the fourth straight day, gaining +0.23%. However, participation was abysmal under the surface. Bespoke points out that breadth has never been weaker on a positive day (since 1990).
- The three largest stocks — $NVDA, $AAPL, and $MSFT — all broke out to fresh record highs today, yet roughly 80% of stocks closed lower, with 104 advancers and 398 decliners.
- Days like today have become more common as the index has grown increasingly reliant on its largest components. Weak breadth isn't ideal, but it can sometimes reflect healthy rotation, and the rally can persist as long as the Mega-Caps remain intact.
The Takeaway: The S&P 500 notched another gain today, but participation was extremely thin. Weak breadth isn't ideal, but the rally can persist if Mega-Caps hold up and rotation occurs.
