Fewer Stocks Are Driving The Market To All-Time Highs

One of the biggest market cliches we’ve seen in the last few weeks is that, though the bull market rockets forward, it’s becoming increasingly a “stock-picker’s market.”

That’s market jargon for the idea that individual stocks are increasingly doing their own thing as opposed to moving in unison. This chart from Bespoke Investment Group shows what’s going on.

“As shown, 70% of the stocks in the index are currently above their 50-day moving averages, which is well below the breadth levels seen as recently as October when the index experienced its last big breakout to new highs,” Bespoke writes. “Throughout the year, we’ve seen breadth decline with each successive breakout, so it has definitely become more of a ‘stock-picker’s market’ late in the year.”

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