
Breadth Improves as SPY Falls – Yield Spreads Remain Narrow – 10yr Trends Higher
SPY and QQQ fell sharply in June as tech and AI names led a market pullback. Breadth, however, improved as the percentage of stocks above their 200-day SMA increased. Over 60% of S&P 500 and S&P 1500 stocks are above their 200-day SMAs, which is the highest level since mid April. New highs also expanded. This means money is moving out of tech and into other areas of the market, which benefits small-caps and mid-caps.