Split S&P 500 Between Highs And Bear Markets
Typically, when we see more than 20% of stocks at new highs, fewer than 20% of the other stocks in the index are doing so badly that they’re in bear markets, roughly defined as being at least 20% off their highs. Yet this time around, more than 40% of stocks in the S&P are in bear markets.
Split markets can be dangerous, as we saw at the end of 2017, but this is specific to the S&P 500 so far, and has been a positive sign over the longer-term. See the June 17, 2019 report for more detail.