Median S&P 500 Stock Short Interest as % of Market Capitalization The S&P 500’s median short interest level is low at 1.8%, suggesting that market participants are largely optimistic or, at least, not significantly bearish regarding its future performance. Image: Goldman Sachs Global Investment Research
S&P 500 Stock Splits – Median Relative Performance vs. Sector While stock splits do not inherently change a company’s value, the increased investor interest they generate often leads to short and medium-term outperformance relative to the sector. Image: BofA US Equity & Quant Strategy
Percentage of S&P 500 Stocks Above 200-Day Moving Average The percentage of S&P 500 stocks above their 200-day moving average is showing signs of a bearish divergence, which can be an early warning signal of a potential market correction. Image: BofA Global Research
S&P 500 Stocks Net Call Volume Are investors and traders too optimistic? Megacap growth and tech call buying volume is at its highest level on record. Image: Deutsche Bank Asset Allocation
Share of S&P 500 Stocks Underperforming the Index Despite the strong performance of the S&P 500 index in 2023, more than 70% of the individual stocks within the index underperformed, indicating that the overall gains were driven by a relatively small number of stocks. Image: Gavekal, Macrobond
S&P 500 and the Percentage of S&P 500 Stocks Above 50-Day Moving Averages The percentage of S&P 500 stocks trading above their 50-day moving averages is a warning sign, which could potentially have negative implications for the overall market performance. Image: BofA Global Research
S&P 500 Stocks and Non-S&P 500 Stocks as a % of U.S. Large Cap Funds AUM Despite the abundance of stocks, the lack of interest in investing beyond the “Magnificent Seven” creates bias, leading to excessive attention and favoritism that may undervalue or neglect other investment opportunities. Image: BofA US Equity & Quant Strategy
Share of Median S&P 500 Stock’s Trailing 6-Month Return Explained by Micro Factors 71% of median stock’s trailing 6-month return can be explained by micro factors. Image: Goldman Sachs Global Investment Research
S&P 500 Stocks – Average Earnings Day Moves In the current quarter for earnings, U.S. stocks have moved +/-4.6%, which is the highest in the last ten years. Image: Goldman Sachs Global Investment Research
Liquidity – S&P 500 21-Day Realized Volatility vs. Median S&P 500 Stock Bid-Ask Spread As equity market liquidity has deteriorated, investors should expect market swings to continue. Image: Goldman Sachs Global Investment Research