Goldman Sachs strategist: S&P 500 rally led by too few stocks, flashing warning signal
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"If we look at the S&P 500 Index, it is at a historic high, but the median stock in the index is still about 13% below its own high," Snider said. "This is one of the most significant disparities in the past 25 years. From a market perspective, this does send some warning signals." Of the last five record closing highs in the S&P 500 Index, four occurred when the number of declining stocks exceeded the number of advancing stocks. BofA Global Research strategists pointed out that in April, only 23% of S&P 500 constituents outperformed the index, making it the fourth lowest monthly value since the bank began tracking data in 1986.
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