Morgan Stanley Flags 2 Market Red Flags as 51% of Russell 3000 Enters Bear Territory
Updated
Updated · Yahoo Finance · Sep 28
Morgan Stanley Flags 2 Market Red Flags as 51% of Russell 3000 Enters Bear Territory
3 articles · Updated · Yahoo Finance · Sep 28
Summary
Morgan Stanley said investor confidence is being undermined by weakening internals even with the S&P 500 trading near record highs.
49% of S&P 500 stocks now trade above their 200-day moving average, down from about 75% over the summer, signaling a sharp deterioration in market breadth.
Wilson said that narrowing accelerated after Jackson Hole, suggesting markets are increasingly discounting additional tightening rather than just higher crude prices and Treasury yields.
51% of Russell 3000 stocks have fallen at least 20% since June, a broad pullback that points to bear-market conditions beneath the index surface.
That weakness fits a wider concentration problem: another report found nearly half of S&P 500 stocks showing negative beta as mega-cap tech continues to dominate index performance.