Major U.S. stock indexes like the S&P 500 may have finished lower on Tuesday, but underneath the hood, signs of strength persisted.
While selling was mostly concentrated in the semiconductor sector, stocks in other areas of the market continued to climb. As a result, the percentage of S&P 500 members whose shares hit fresh 20-day highs hit 37%, the highest reading in months, according to Renaissance Macro’s Jeff deGraaf.
The percentage of stocks hitting new 52-week highs surged to over 20%, an indication of broad leadership in the index. That should be encouraging, given that milestones like this typically haven’t occurred near major market tops like those seen in 2000, 2008 or 2022. However, others say the market is looking dangerously frothy.