Can non-tech constituents of the S&P 500 catch up?



Currently, about 35% (approximately 175) of the S&P 500 index constituents are in bear market territory, the highest proportion since May.

In contrast, over the 12 months ending November 2024, this percentage has fluctuated around 20%.

Due to narrowing market breadth, the S&P 500 index relative to the S&P 500 equal-weight index has fallen to its lowest level in 22 years.

This means that the average performance of stocks is significantly lagging behind the market benchmark.

If market breadth can improve, it would provide more momentum for the market rally.
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