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The video in this report is only accessible to members

Divergence between the top performing stocks within Technology and the broader market could eventually lead Stock indices to consolidate.  Yet, currently, we’re seeing the opposite, as groups like Industrials and Healthcare have both pushed back to new all-time highs.  A minor broadening out in sector performance has happened, and this week has brought about a rally back to new all-time highs for MSCI World index, along with a breakout in Equal-weighted SPX to the highest levels in nearly two years.  While many have avoided chasing some of the highflyers that have dominated performance, there’s been precious little sign of these stocks turning down.  Conversely, the broader market has now begun to show signs of mean reversion higher after a weak January.    

Does poor breadth matter?  Sure.  However, the breadth expansion from October 2023 into year-end was so robust that many intermediate-term breadth gauges remain in good shape, despite some of the waning in short-term measures.

While investors are right to be curious about how far SPX or QQQ can extend, if DJ Transportation Avg., Equal-weighted S&P 500 and/or Value Line are not keeping up the stock market does...

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