Market breadth is deteriorating: Only 22% of stocks in the S&P 500 have outperformed the index over the last 30 days, the 3rd-lowest reading since 1996. This is down from 65% recorded in February, the highest percentage in 8 months and less than half of the long-term average of 50%. Over the last 30 years, there have been only 2 brief periods when market breadth was weaker, in 2024 and 2025. This comes as the Magnificent 7 now accounts for a near-record 35% of the S&P 500’s market cap, while the top 10% account for ~40%, also shy of an all-time high. As a result, Information Technology and Communication Services sectors represent 46% of the S&P 500’s market value. Big tech is all that matters.(The Kobeissi Letter)