With the S&P 500 Index less than -1% off of its 52-Week High, many investors may read the headlines and understandably conclude that the market is simply shrugging off the most pressing risks. However, when looking at the market internals, it quickly becomes apparent that it is not the “entire” market that is rising. Conversely, the MAG 7 stocks are up over +6% month to date while the average stock, as reflected by the S&P 500 Equal Weight Index (RSP), is down by roughly -3%. Furthermore, the number of New Highs to New Lows on the NYSE has fallen to about 20% (or 5 times more new lows than highs). Similarly, other measures of market breadth like the percentage of stocks trading above their 50 and 200 day moving averages have deteriorated significantly as well.
September 22, 2026
With the S&P 500 Index less than -1% off of its 52-Week High, many investors may read the headlines and understandably conclude that the market is simply shrugging off the most pressing risks. However, when looking at the market internals, it quickly becomes apparent that it is not the “entire” market that is rising. Conversely, the MAG 7 stocks are up over +6% month to date while the average stock, as reflected by the S&P 500 Equal Weight Index (RSP), is down by roughly -3%. Furthermore, the number of New Highs to New Lows on the NYSE has fallen to about 20% (or 5 times more new lows than highs). Similarly, other measures of market breadth like the percentage of stocks trading above their 50 and 200 day moving averages have deteriorated significantly as well.