Strong, but fragile
The S&P 500 Index is seemingly unstoppable. What global depression, right? The benchmark index closed at yet another new all-time high on Tuesday and is now +4% above the pre-COVID-19 peak on February 19. Despite this relentless strength, the rally in stocks is looking increasingly fragile. The following are five reasons why a correction in the S&P 500 may be imminent.
1. Increasingly narrow breadth
The U.S. stock market continues to set new all-time highs driven by an increasingly shrinking set of individual stocks. As one of many signs of how narrow