Posted 3/9/2024, 12:24:00 PM
S&P 500 Hides Stock Volatility Under a Calm Surface
- The S&P 500 index has been relatively calm, while individual stocks have seen much more volatility
- This "duck market" is atypical for a bull market, with calm surface but turmoil underneath
- A handful of megacap stocks are masking weakness in many other S&P 500 constituents
- Market breadth, as measured by the percentage of stocks above their 200-day average, is slowly improving
- Continued breadth improvement is essential for the rally to continue, shrinking the gap between index and stock volatility