S&P 500 internal breadth has weakened to five-month lows despite index holding at records, with historical seasonality patterns suggesting August weakness followed by Q4 strength.
Macro & Markets ·
Only 42% of S&P 500 stocks are trading above their 50-day moving average, the lowest share in five months, indicating weakened internal breadth despite the index remaining at record levels. Historical seasonal patterns show U.S. stocks typically weaken starting in August, peak weakness around mid-September, then strengthen in the fourth quarter, according to BofA.