Investor confidence is gaining traction as the momentum factor takes the lead in the US equity markets, driving a rally across major indices. This renewed focus on trending stocks is contributing to the positive sentiment, despite the sideways price action observed earlier in December. However, the disconnect between market breadth and the S&P 500's performance, which hasn't been seen since 1997, suggests potential caution for investors. This discrepancy indicates that a limited number of stocks may be propelling the overall index gains, raising questions about the sustainability of the rally.
The ProShares Short S&P500 ETF (SH) experienced a decline, dropping 0.64% to $41.61 at 10:40 AM on Wednesday, December 11.