Today’s Chart of the Day was shared by Dan Russo (@DanRusso_CMT). The Equal Weight S&P 500 is on track for its second worst month relative to Cap Weight over the past two decades. Mega Cap Tech stocks like $AAPL, $MSFT, and $NVDA have been one of the few pockets of strength this month, while the majority of stocks are down. Dan points out that it's almost as if Mega Cap Tech is acting like a safe haven. It's obviously bullish for the largest stocks to go up on an absolute basis, but narrow leadership like this is not ideal. As the legendary technican Bob Farrell once said; "Markets are strongest when they are broad, and weakest when they narrow to a handful of blue-chip names."
Chart of the Day - Thursday, March 23rd, 2023
March 23, 2023
