The S&P 500's resilience in December, despite a streak of negative breadth, is raising eyebrows among market analysts. This unusual performance, where the index maintains gains without a single day of positive breadth, is the longest such streak since 1997. The market's current environment, marked by high valuations and speculative investments, is contributing to a disconnect between asset prices and traditional valuation metrics. This divergence is fueling concerns about a potential market bubble, especially as speculative stocks continue to rise while the broader index lags. The anticipation of a "hawkish cut" by the Federal Reserve could further shift investor sentiment, adding to the market's complexity.
The ProShares Short S&P500 ETF (SH) experienced a slight decline, dropping 0.41% to $41.65 at 10:40 AM on Monday, December 16.