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J.P. Morgan: U.S. stocks rise but breadth narrows, which is a bad omen
Jin Shi data news on June 25th, Morgan Stanley’s Marko Kolanovic said that the share of stocks driving the rise of the US stock index is continuously decreasing, which is worrying. The strategist said that historically, ‘the market rises while breadth narrows, which is a bad omen.’ He pointed out that the equal-weighted S&P 500 index is flat, despite the market-cap-adjusted S&P 500 index continuing to rise. The proportion of stocks above the 50-day moving average has fallen from around 90% earlier in 2024 to about 50%.