Chart of the Day: The Costanza Market

Today's Chart of the Day is from Jason Goepfert on X: "It has been a Costanza market* to a historic degree. Never before has the S&P 500 index gone one way while its stocks went the other on so many days this far into a year."

(*A Costanza market is defined by Investopedia as "buying stocks at market highs when they are most expensive.)

X highlights some interesting stock market behavior. Although the S&P 500 continues to trend high, there has been an unusually large number of days where market breadth has diverged from the index’s direction—meaning the index moved up or down while a majority of its constituent stocks moved the opposite way.

This can be attributed to the recent volatility and significant influence of mega-cap technology companies, which have been key drivers of market performance in recent years.