Posts

Sevens Report Warns Weak Market Breadth Threatens S&P 500 Rally

/in , /by

Tom Essaye cautions that rising concentration and falling participation raise risks of another sharp pullback.

Pay attention to these ’concerning’ market developments

U.S. equities fell Thursday as investors shifted focus from the Trump-Xi summit to surging bond yields and lackluster mega-cap tech earnings. The S&P 500 dropped nearly 1%, closing at weekly lows. While still up 16.25% year-to-date, Tom Essaye of Sevens Report Research said the rally is “deceiving,” with market breadth weakening beneath the surface.

Essaye noted that the top 10 companies now make up 40.5% of the S&P 500’s value — surpassing the tech bubble peak — with Nvidia alone at 8% after surpassing a $5 trillion market cap. Only 28.6% of S&P components are outperforming the index, and just 53% remain above their 200-day moving average. The NYSE Advance-Decline Line has also hit a 12-week low.

He warned that without a rebound in market breadth, risks of another “air pocket-style” drop or April-like correction are rising. “A broad-based rebound is needed to confirm that the bull market remains alive and well,” Essaye wrote.

Also, click here to view the full article published in Investing.com on November 1st, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.

Sevens Report Warns of Rising Risks as S&P 500 Breadth Weakens

/in , /by

Tom Essaye cautions that half of S&P 500 stocks are down YTD despite record-level index.

Why risks of a stock-market drop are rising amid extreme concentration in the S&P 500, Sevens Report warns

Nearly half of S&P 500 stocks are posting year-to-date losses even as the index trades near record highs, according to Sevens Report Research. Founder Tom Essaye warned this divergence signals growing market fragility. “That is not so healthy,” he said, noting the risk of another sharp “air pocket” drop or a broader April-style pullback is rising daily. The top 10 S&P 500 companies now make up 40.5% of the index—surpassing the concentration seen during the 2000 tech bubble. Essaye also flagged weakening market breadth, with the NYSE Advance-Decline Line hitting a 12-week low and only 53% of S&P 500 stocks trading above their 200-day moving averages, the lowest since June.

Also, click here to view the full article published in MarketWatch on October 31st, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.