Blame it on the WSJ’s Jon Sindreu who wrote a column about the Magnificent 7 and all the rest in today’s WSJ (“How Long Can The Magnificent 7 Stocks Hold The Line?”). I know I’ve beaten this argument to death but it’s the most important technical analysis of the market. The Magnificent 7 – Apple (AAPL), Microsoft (MSFT), Google (GOOGL), Facebook (META), Amazon (AMZN), Nvidia (NVDA), and Tesla (TSLA)– are carrying the entire market. Beneath the surface of the major, market cap-weighted indexes, most stocks are languishing.You can see this in the chart above which compares the performance of QQQ – dominated by the Magnificent 7 – and the Equal Weight S&P (RSP) and Russell 2000 Small Caps (IWM). In fact, 44% stocks in the S&P are down this year, according to Sindreu. The Equal Weight S&P has gone nowhere for almost three years now as you can see in the chart below from Bespoke.
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