The S&P 500 doesn’t care about breadth the way people think it does.
It cares about weight.
When leadership rotates away from the largest names and into smaller areas of the market, the index struggles, even while opportunity explodes underneath the surface.
That’s exactly what’s happening now.
Breakouts are working.
Breakdowns are failing.
Net new highs are persistent.
Yet the index looks tired because capital is rotating away from the few stocks that dominate its returns.
This is why passive investors feel lost right now.
It’s like staring at the scoreboard while the real game is happening on the sidelines.
This environment rewards those willing to do the work, look beyond the index, track breadth and participation, and follow rotation instead of fighting it.
That doesn’t mean the market is broken.
It means the opportunity set has shifted.
This is a strong market of stocks masked by a weak stock market.
Indexes can stall while portfolios grow.
But only if you’re willing to dig. And then dig some more.
