ACTV - Warning Flags For The Stock Market

2024-06-18 09:15:00 ET

Summary

• The internal health of the stock market has markedly deteriorated, giving way to a number of warning flags that could presage unfavourable performance in the short to medium term.
• Stock market breadth has fallen by the wayside as fewer and fewer participants are partaking in the S&P 500’s rally.
• Growth stocks and Mag-7 that dominate the Nasdaq and S&P 500 have gotten ahead of themselves from a forward-looking earnings and business cycle perspective, but, the outlook for both remains relatively supportive of risk assets over the next nine or so months.

Stock market internals are rapidly deteriorating

Over the past few weeks, the internal health of the stock market has markedly deteriorated, giving way to a number of warning flags that could presage unfavourable performance in the short to medium term....

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