The S&P 500 has been setting record highs in recent days, a dramatic turn from the market selloff back in April. But analysts are warning fortunes could change if overall market participation in the rally holds at the current rate.
The new heights the S&P is reaching are being undermined by narrow company participation in those highs, according to a July 5 report from Ari Wald, head of technical analysis at wealth and investment management firm Oppenheimer & Co., and first reported by Bloomberg. Referred to as market breadth, analysts often try to see how many companies in a specific index or sector are participating in a rally to gauge how healthy it really is.
