AFTERNOON INTERNALS | 12:37 PM ET
Nasdaq +0.97%. Tech is leading. But breadth isn't confirming.
The S&P is up 0.50%. The Nasdaq is up nearly 1%. The Dow is red at -0.11%. All five Mag 7 earnings are in. Tech is rallying. But the internals say the rally is narrow.
A/D ratio: 0.94x. More stocks are declining than advancing.
Volume ratio: 1.14x. Mildly positive.
47.8% above session VWAP.
NYSE: 0.62x | Nasdaq: 1.18x | AMEX: 1.15x
The Nasdaq is up almost 1% and the A/D ratio is below 1.0. More names are red than green. The index is being pulled higher by a handful of mega-cap names while the average stock goes nowhere.
The exchange split is the clearest signal. NYSE at 0.62x. Nasdaq at 1.18x. Old economy is selling. Tech is buying. The post-earnings verdict: the mega-caps delivered and the money is concentrating into the winners.
This is the same pattern that defined April. Narrow leadership carrying the index while breadth lagged behind. The tape repeatedly bought into weak breadth and was proven right when earnings confirmed the positioning.
The question now: does this broaden, or does the narrow leadership that carried earnings season become the new normal?
A month of data says: when breadth eventually catches up to the tape, the move holds. When it doesn't, you get pullbacks. Right now breadth is lagging.
The catalysts are behind us. The earnings proved the mega-caps are earning their multiples. The money is staying in tech. But the average stock isn't participating.
Watching the tape. $SPX $SPY $QQQ $DJD