Equal-Weighted S&P 500 Lags as Market Breadth Narrows
The equal-weighted S&P 500's ratio to the cap-weighted index fell to 1.11, its third-lowest level since April 2003, after sliding 5.5% over five weeks.
US equity market breadth is weakening even as the headline S&P 500 index holds up. The ratio of the equal-weighted S&P 500 to the main S&P 500 index has dropped to 1.11, the third-lowest reading since April 2003.
The ratio has declined for five consecutive weeks, a cumulative move of -5.5%. Over that stretch, the equal-weighted index lost -4.4%, while the S&P 500 rose +0.8%.
The metric is on track for a fourth consecutive annual decline, the longest such streak since 1999. It peaked at 1.60 in April 2015.
This divergence highlights a narrow advance in the cap-weighted benchmark while the average US stock struggles, with AI carrying the broader stock market.
Source: The Kobeissi Letter