Odd Lots · Thursday, October 1, 2026
Luke Kawa highlights a concerning trend where the S&P 500 is near record highs, yet only 51.2% of stocks are above their 200-day moving average, a breadth metric not seen since the dot-com bubble peak. This suggests a market heavily reliant on a few AI beneficiaries, with many other sectors struggling.
“What's that all about? Yeah, I think why they're talking about breadth is because it's absolutely god-awful.”
“Coming into this week, the S&P 500 was 0.5% off record high. Mm-hmm. just 51.2% of stocks were above their 200 day. The last time we had that proximity to a high with that few stocks above the 200 day was literally the day after the dot-com bubble peak.”
“So it really is a case of, and I think to unify a lot of what you were talking about in the intro, Is the market inert to higher rates? No, a lot of the market isn't.”