Stock Market Rally One of Weakest in History Despite Recent Gains

The stock market rally since October 2022 is one of the weakest bull markets in history according to Ned Davis Research. Valuations remain high and the Fed's tightening has limited upside.

The S&P 500's price-to-sales ratio is still above its dot-com bubble peak in 2000, suggesting the market is expensive.

Demand for stocks is weak based on trading volumes. Stocks typically see a surge in demand at the start of a new bull market.

Breadth signals are poor with fewer stocks participating in the upside. Major indices are being propped up by mega-cap tech stocks.

The advance-decline line recently hit a new bear market low, highlighting questionable broad market health per Ned Davis Research.