Good morning,
Last week’s report was titled, “It’s do or die for the rest of the market” and the rest of the market very much chose to do.
That’s the most important takeaway from last week: Breadth needed to catch higher and it did.
Of course, under the surface, the story was more complicated.
The small-cap surge on Thursday came at the expense of mega-cap leaders with the Magnificent 7 ETF falling a remarkable 4.5%. In fact, even though nearly 80% of S&P 500 stocks were higher on Thursday, the index declined almost 1%.
With record concentration at the top of the market, that should be a wake-up call for passive investors.
But here’s how I want to think about rotation and leadership going forward.
Watch with a 7-day free trial
Subscribe to Brown Technical Insights to watch this video and get 7 days of free access to the full post archives.
