Bulletin
Investor Alert
Lawrence G. McMillan

MarketWatch Options Trader Archives Subscribe

July 29, 2021, 10:59 a.m. EDT

This eye-catching divergence in the stock market is a warning against complacency

By Lawrence G. McMillan

The S&P 500 index is performing at a far different rate than the “average” stock. This has been going on for a while and is not necessarily a bull market “killer,” but it is certainly not the healthiest of environments.

The S&P /zigman2/quotes/210599714/realtime SPX +0.75% , the NASDAQ-100 /zigman2/quotes/210598364/realtime NDX +0.63% and the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +1.09% are all at or near all-time highs. But the Russell 2000 RUT /zigman2/quotes/210598147/delayed RUT -0.37% is lagging behind, reflective of the poor internal strength of the overall market. The internal measurements show fairly heavy put buying, poor breadth on many days, and even more new 52-week lows than new highs.

What is propelling SPX and the narrow-based indexes is a relatively small number of large-cap tech stocks.

/zigman2/quotes/210599714/realtime
US : S&P US
4,471.37
+33.11 +0.75%
Volume: 2.05B
Oct. 15, 2021 4:46p
loading...
/zigman2/quotes/210598364/realtime
US : U.S.: Nasdaq
15,146.92
+94.50 +0.63%
Volume: 558,393
Oct. 15, 2021 5:16p
loading...
/zigman2/quotes/210598065/realtime
US : Dow Jones Global
35,294.76
+382.20 +1.09%
Volume: 327.87M
Oct. 15, 2021 4:46p
loading...
/zigman2/quotes/210598147/delayed
US : US Composite
2,265.65
-8.52 -0.37%
Volume: 1.48M
Oct. 15, 2021 7:12p
loading...

Partner Center

Link to MarketWatch's Slice.