While concern has grown in the past week that narrowing market breadth has tapped the brakes on the S&P 500 Index’s blistering rally, it turns out that stock bulls are still stepping in to snap up shares ahead of the Federal Reserve’s interest-rate decision.
The index’s DVAN trend line — a proprietary divergence analysis that measures buying or selling pressure — has been on a buying streak since Election Day, with investors continuing to scoop up shares in multiple trading sessions heading into the closing bell in the past week, according to data compiled by Bloomberg. While the rally has stalled in recent days, severe weakness hasn’t emerged yet with price and breadth trends as the S&P 500 sits less than 1% away from a record after 57 all-time highs in 2024.