Morgan Stanley point to a broadening of the S&P 500 rally in the past month

Morgan Stanley on US equities:

• “We analyze 6 different breadth measures across S&P 500 sectors and for the overall index by looking at their percent ranks this cycle (since the Covid lows)”
• “Bottom line, breadth has improved over the past month — an average of the percent ranks across these 6 measures for the overall S&P is now 70%, up from 55% a month ago”

Analysts at MS add that the the strongest breadth profile versus one month ago is currently the industrials sector, and that energy, materials, real estate and utilities have exhibited the greatest breadth improvement in the last month.

• “The recent broadening within large cap leadership may be how the market is dealing with the inconsistency of higher rates and still elevated multiples for the large cap equity indices”

This article was written by Eamonn Sheridan at www.forexlive.com.