$S&P 500(.SPX)$ is sitting near a record high.
But underneath the surface, the market looks very different.
Only about 48% of S&P 500 stocks are currently above their 200-day moving averages, meaning roughly 52% are below.
The index was just 0.44% from its record close on Tuesday.
The last time the S&P 500 was this close to a record while a similar share of its components traded below the 200DMA was March 2000, according to Dow Jones Market Data.
That doesn’t tell us what happens next.
It does tell us that index strength is being carried by a relatively narrow group of stocks.
The headline index can look healthy while the average stock underneath it tells a very different story.
That divergence is worth watching.
Markets are always moving - and sometimes, the best move is knowing what works for you.
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