Chart of the Day - Thursday, September 17th, 2020

Today’s Chart of the Day was shared on Twitter by Elena Popina (@lena_popina). The chart shows the monthly % change in the spread between the equal-weight S&P 500 and the normal cap-weight S&P 500. September is far from over, but as Elena points out, equal-weight is having its best month relative to cap-weight since 2009. This is evidence of broadening participation in the S&P 500, which is bullish for the overall market. This probably doesn't feel very bullish if you've been overweight some of the largest stocks, like $AAPL,  $MSFT, $AMZN, and $FB. All four of these market darlings are more than 10% off their September 2nd highs. However, it's hard to argue that this isn't a healthy development for the market longer-term. Especially considering there was so much concern over the fact that a handful of Mega-Cap stocks were doing all the heavy lifting for the S&P 500.