Fundstrat’s Mark Newton: Market Breadth Signals a Stronger Rally Beneath the Surface

Fundstrat Head of Technical Strategy Mark Newton discusses why the current equity rally appears stronger beneath the surface than the S&P 500 and Nasdaq 100 may indicate, even as technology shares pull back. The conversation covers market breadth, sector leadership, macroeconomic pressures, and how technical strategy weighs geopolitical headlines against earnings and price structure.

■ Market Breadth and Index Resilience
- Equal-weighted S&P 500 rises to its highest level since early September
- Percentage of stocks above their 20-day moving average doubles from about 20% to 45%
- S&P 500 remains within roughly 100 points of all-time highs

■ Technology, Macro, and Headlines
- Technology whipsaws and pulls back after large moves earlier in the year
- Elevated bond yields, higher crude, inflation concerns, and ongoing wars frame the backdrop
- A Reuters report on potential ordered departures at U.S. embassies in the Gulf briefly softens sentiment

■ Technical Strategy and Outlook
- Technical analysts tend to look past exogenous news headlines
- Healthcare leadership and technology stabilization are highlighted
- Choppy conditions may persist until after the midterms, with evidence of bond yields and crude peaking cited as important

Viewers interested in technical analysis, market breadth, and sector rotation can use the discussion to frame how index-level moves may differ from broader market participation. It offers a concise look at the factors Mark Newton is monitoring and the conditions he says would support a more durable rally.