Market Call: The Breadth Question

They are back in their saddles again. The Magnificent 8 (a.k.a., the MegaCap-8) have been leading the stock market higher again. They've regained much of the market cap share they lost during last year's bear market, especially in recent weeks. They currently account for 24.7% of the S&P 500 index and 46.5% of the S&P 500 Growth index (chart). As a result, Growth has outperformed Value, LargeCaps has outperformed SMidCaps, and Stay Home has rebounded relative to Go Global.

In addition, the S&P 500 market-cap weighted index has outperformed the equal-weighted one (chart). That's especially so since the start of the banking crisis on March 8 through Friday's close: The S&P 500 is up 3.3%, while the equal-weighted index is down 3.4%.