The S&P 500 Index is down about 4% from its January all-time high of about 6,979… On the surface, that looks like “noise” – a routine dip in a still-intact bull market.
But the headline number is hiding a tale of two sides of the market that could not be more divergent…
On one hand, the equal-weighted Invesco S&P 500 Equal Weight Fund (RSP) is up around 2% year to date. This gain has largely come from the financial, energy, industrial, and health care industries.
Conversely, the “Magnificent Seven” mega-cap stocks are deep in the red from their 52-week highs. On average, they’re down about 18% from those peaks.
As an old saying on Wall Street goes, “If the troops lead, the generals will follow.”
Unfortunately, that’s far from the only headwind investors need to deal with in 2026…
This post originally appeared at DailyWealth.