Large-caps continue to lead the market as the S&P 100 ($OEX) recorded a 52-week high this week. Thus far, the S&P 100 is the only major index to reach this milestone. The Nasdaq, Russell 2000, S&P 500 and Dow Industrials remain shy of their spring highs. This means the S&P 100 is leading the market and large-caps are showing relative strength. Even though $OEX may be short-term overbought, this fresh 52-week high confirms that this key index remains in an uptrend.
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The PerfChart shows the three month percentage change for six major indices: the S&P 100, S&P 500, S&P MidCap 400, S&P SmallCap 600, Nasdaq and Dow Industrials. $OEX shows the biggest gain over this timeframe (+9.35%), but the Nasdaq is not far behind with a 9.34% gain. Techs and large-caps are clearly the leaders. $MID, which represents mid-caps, shows the smallest gain, which means it is underperforming. $INDU is also underperforming with the second smallest gain.
Arthur Hill CMT