Only 28% of S&P 500 stocks are outperforming the overall $SPX, the lowest amount since 1998 and the 2nd lowest in the last 33 years 👀 pic.twitter.com/E8tXbbhAlR
— Barchart (@Barchart) December 25, 2023
S&P 500 $SPX has now spent the most amount of time in overbought levels since late 2019/early 2020 pic.twitter.com/rvKvAFS9Yd
— Barchart (@Barchart) December 25, 2023
The S&P 500 ($SPX) has been in an overbought state since 2019, coupled with a concerning trend of low stock outperformance. This dual signal raises caution flags, suggesting a potential danger in the market. Extended periods of overbought conditions often precede corrections, and the lack of widespread stock outperformance implies a broader market vulnerability. Investors might want to tread carefully, considering the increased risk of a market downturn or increased volatility ahead.