Top 5 SP500 Stocks Dominate Market, Raising Concerns
Currently, the top 5 stocks in the $S&P 500(.SPX)$ make up 29% of the index, the most concentrated it has been in over 60 years.
This market has very particular characteristics as mentioned in the latest edition of the S/R levels.
The risk is that if those five stocks sneeze, they could heavily impact the performance of the overall index, even if other stocks are thriving.
The five stocks are: $Microsoft(MSFT)$ $Apple(AAPL)$ $NVIDIA Corp(NVDA)$ $Alphabet(GOOG)$ $Alphabet(GOOGL)$ $Amazon.com(AMZN)$.
Was there a crash in 1965? No, there was a bullish overextension followed by a bear market in 1966, SPX fell -23% from the top in January to the bottom in October that year.
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