Advisors.LeutholdGroup

The May Green Book, published a short three weeks ago, included an article titled “Market Narrowness in 2023” discussing the Big Tech theme’s market leadership this year.  We noted that 77% of the S&P 500’s year-to-date return through April 30^th was produced by the nine S&P 500 members of the NYSE FANG+^® Index, itself a collection of just ten large companies that dominate the Social/Cloud/Innovators cohort.  (As for which FANG+ company is not also in the S&P 500, that is your puzzle challenge for this long weekend.)

Yesterday was the six-month anniversary of the bear market low of 3,577.03 in the S&P 500. We think it’s unlikely the moderate upswing since then represents a new cyclical bull market. However, with the evidence still weighing in at Neutral, we’re not betting the farm on that opinion.