A snippet from Société Générale on US equites, looking favourably at the broadening rally:
- equal-weighted S&P 500 had its biggest one-day outperformance versus its market cap-weighted counterpart since Nov 2020 last week
SocGen says this is a boost of confidence for stocks, comparing narrow with broader breadth:
- narrow breadth often occurs in a bear market or when a few concentrated stocks drive the market into a ‘bubble.’
- we now think improving breadth should be the way for the S&P 500, rather than a recession or concentrated positioning, as our cycle indicators continue to rise over the last five quarters and the profit cycle is broadening beyond Nasdaq-100 stocks
This article was written by Eamonn Sheridan at www.forexlive.com.
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