Updated Models & Spotlight Chart 6/8/2025

The S&P 500 Gets Closer To A New High But How Many Stocks Will Join it?

The S&P 500 rose 1.5% last week, led by XLK, XLE, and XLC sectors. We are now less than 2.5% from a new high for the large cap index, but small caps are still down 15% and mid caps are off by 10%. This clearly shows where leadership has been coming from, and it has not been a chase for smaller capitalized stocks. On a sector level we have some good strength as well. XLI made a new high but below the surface just 52% of stocks in the Industrial sector are trading above their long-term average. The same for XLK, it’s about 1.6% from a new high and barely half of stocks are in up trends for the Tech sector. The market has been fine to ride on the fumes of the few, let the NVDA’s and MSFT’s run the show, but it does bring with it volatility in daily price swings as these massive tails wag the financial dog. I take a closer look at some of the breadth stats for the broad market in this week’s Spotlight Chart.

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Summary of Models

Index & Sector Performance Summary

Volatility Risk Trigger

VRT remains at 48, still below the threshold for a signal.