What if the Magnificent Seven are finished?
Outside the Box
The rest of the market will have to do heavy lifting for the S&P 500 to move higher
Published:
What if the Magnificent Seven are done with their bull phase? As megacap growth stocks comprise roughly 40% of the S&P 500 SPX index weight, the math becomes increasingly challenging. The rest of the market will have to do the heavy lifting in order for the S&P 500 to advance.
The odds of that scenario becoming reality is rising. The market just flashed a “Hindenburg Omen” warning. In plain English, the ominously named Hindenburg Omen occurs when a highly bifurcated market loses momentum and starts to turn down.