Remember when China had a huge rally in April and May?
Nice chart from @HumbleStudent showing relative strength rolling over again. Source: Ryan Detrick on X
The big names were the biggest losers this week
Even if other segments of the market are moving higher, it is tough for the main index to make progress of the big names continue to lose ground. Since July 10th, the market cap of the Magnificent 7 stocks has dropped a mind-numbering $2 trillion... Source: Trend Spider
Russell 2000 Outperformance vs S&P 500 continues.
RTY vs SPX break out is at its widest levels since Feb 2000, > +9% MTD Source: Bloomberg, HolgerZ
Is there more drawdown ahead for the S&P500?
Over the last ~100 years, median year has a SPX peak to trough drawdown of 13%. Believe it or not current drawdown has only been 5%... Source: GS
That was an enormous miss in durable goods, coming in at -6.6% vs a forecast of +0.3%.
We need to transport things in a growing economy, right? "Transportation equipment, down two of the last three months, drove the decrease, $19.6 billion or 20.5 percent to $75.8 billion. Source: Markets & Mayhem
Nasdaq has underperformed Russell 2000 for 11 of the last 12 days, erasing YTD outperformance for the big-tech index
Source: Bloomberg, www.zerohedge.com
The Magnificent 7 dropped by more than $750 Billion yesterday
Source: Evan, Yahoo Finance
The S&P 500 yesterday ended a streak of 356 trading days going back to February 2023 without experiencing a one-day drop of 2% or more.
This was the longest streak since we went 949 trading days from May 2003-February 2007 without one! Source: Bespoke
