While S&P 500 hits record high, many stocks hitting lows

The S&P 500 rose 0.7 percent last week to finish at a record high. The Nasdaq Composite rose 2.7 percent to also finish at a record high.

The record highs notwithstanding, some analysts are wondering whether the stock market rally lacks breadth.

Brett Steenbarger wrote in Forbes that this has been “a narrow rally”.

Steenbarger said that with the six “FAANMG” stocks accounting for over 27 percent of the total capitalisation of the S&P 500, this “is the most concentrated market since the 1960s”.

Steenbarger also noted that the proportion of stocks hitting new highs have been unusually low while the proportion of stocks hitting new lows have been unusually high.

Steenbarger said that a similar pattern had occurred in March 2000 and late 2007 prior to bear markets.