The S&P 500 is showing resilience despite a persistent streak of negative breadth, maintaining modest gains for December. This unusual performance is occurring in a market environment marked by high valuations and speculative investments, such as MicroStrategy's recent inclusion in the Nasdaq 100. Analysts are concerned about a potential market bubble, as speculative stocks continue to rise while the broader S&P 500 lags. The disconnect between asset prices and traditional valuation metrics raises questions about the sustainability of current market levels. The S&P 500's ability to defy expectations, despite negative breadth, suggests potential volatility ahead, especially if the Federal Reserve's anticipated "hawkish cut" shifts investor sentiment.
The SPDR Portfolio S&P 500 Growth ETF (SPYG) has experienced a slight increase, rising 0.67% to $91.01 as of 10:40 AM on Monday, December 16.