The S&P 500 Index (SPY; blueish trace of piece of occupation above) hitting fresh bull marketplace highs this past times week, only non that the number of stocks registering fresh 20-day highs barely exceeded the number making novel lows during the week. Steadily fewer issues accept participated inwards the rally since September, reflecting a narrowing of the bull market's base.
Much of this weakness reflects the relative pull of large cap stocks compared alongside smaller cap issues.
For example, I took a await at the first-class Decision Point site as well as noticed that fully 97% of Dow Industrial stocks are trading inwards a higher house their 20-day exponential moving averages (EMAs). For the S&P 500 large cap stocks, that percent is 72%; for the NASDAQ 100 large caps, the proportion is 75%.
When nosotros await at the wide NYSE Composite Index, however, the percent of stocks trading inwards a higher house their 20-day EMAs is 59%. For the NASDAQ Composite, it is 41%.
Although 72% of S&P 500 large caps are trading inwards a higher house their 20-day EMAs, that percent falls to 61% for S&P 400 midcaps as well as 45% for S&P 600 pocket-size caps.
One logical explanation is that U.S.A. dollar weakness is benefiting large cap companies (which oft accept international operations that produce goodness from a weak dollar) to a greater extent than than pocket-size cap companies. If that is the instance as well as U.S.A. dollar weakness continues, nosotros could run into a repeat of "Nifty Fifty", inwards which marketplace pull is largely driven past times the largest cap stocks.
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