Despite Mega-Cap Gains, Warning Signs Emerge for Broader Stock Market

Market breadth data shows only 39% of S&P 500 stocks are above their 200-day moving average, indicating broad market weakness despite headline index levels.

The "Magnificent 7" mega-cap tech stocks make up 30% of the S&P 500 and have buoyed the index, masking weakness in other sectors.

A spike in bond yields and volatility signifies growing investor unease, potentially signaling the start of a broader market sell-off.

First-quarter earnings season is underway, with big banks and other major companies reporting this week and next, adding to market uncertainty.

Technical analysis shows initial support around 431 on the SPY, but stair-step declines remain a risk amid weakening breadth and sentiment.