Chart of the Day - Wednesday, July 14th, 2021

Today’s Chart of the Day was shared in a note by Bespoke. A handful of Mega-Cap stocks have been responsible for the S&P 500's most recent leg higher.  One way to view this Mega-Cap leadership is by comparing the equal-weight S&P 500 (left), to the traditional cap-weighted S&P 500 (right). As you can see, the equal-weight S&P 500 has made zero progress over the past two months, while the cap-weighted S&P 500 has been climbing to record highs. Keep in mind, the five largest stocks in the S&P 500 ($AAPL, $MSFT, $AMZN, $GOOGL, and $FB) make up more than 20% of the cap-weighted index. In other words, the top 1% determines 20% of the average. This narrow leadership has raised some concerns, but it's important to note that the equal-weight S&P 500 is still outperforming the S&P 500 YTD. So, you could also view this as the type of healthy rotation that bull markets thrive off of. Click here for the full note by Bespoke.