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
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
WHAT A DAY...
🌩 Mag 7 stocks all finished in the red today and have erased erased over $500 BILLION of market cap today. ⚡ Nasdaq and S&P 500 had worst their day since 2022 ☄ The S&P 500 just fell over 2% for the first time in 356 trading sessions. It ended the longest stretch without a >2% pullback since 2007 Source: Bloomberg
So far in 2024, only 29.8% of the stocks in the S&P500 are outperforming the benchmark.
Source: Koyfin
$SPY The bull's first line of defense holds strong. 💪
Source: Trend Spider
Equal weight S&P 500 (ETF $RSP) is considerably cheaper than the market cap weighted ETF, just as we may see earnings growth broaden out to a wider swath of companies.
Does that spell opportunity? Source: Markets & Mayhem, GS
The end of complacency? Fear Index Vix has jumped 32.6% last week, the biggest weekly increase since March 2023.
But at 16.5, the Vix level is still below the long-term average of 19.8. And remember that during election years, volatility tends to increase by 25% between July and November... Source: HolgerZ, Bloomberg
