‘Sellers Are Entering the Market’ With S&P Faltering Beyond Tech

Take out the few big tech companies that keep pushing the S&P 500 Index to all time highs and it looks like the engine is running on fumes.

While the index is marching from one record to the next, fewer and fewer stocks are participating in this year’s rally. Nearly a third of its constituents have hit a one-month low in the past month, data compiled by Bloomberg through the end of last week show. That far outnumbers those that are pushing it higher. In fact, just 3.2% hit a one-month high, including Apple Inc. and high-flying Nvidia Corp., which just passed Microsoft Corp. to become the world’s most valuable company.

“Sellers are entering the market, and bulls are dancing on the edge of a knife,” said Andrew Thrasher, a technical analyst and portfolio manager at Financial Enhancement Group. “Everything is now dependent on pretty much just Nvidia and Apple. It wont take a whole lot to take this market down.”