Summary

Indices are at or very near all-time closing highs and we have now completed day 54 of the rally off the April 8 low. So have stocks had enough time to repair the damage created during the decline earlier this year? Well, not all stocks peaked in February (as some had already been in topping patterns or in declines entering 2025), so the answer (which may come as a surprise to some) is "no." The NYSE, S&P 500 Equal Weight, S&P MidCap 400, and the S&P SmallCap 600 all peaked in late November 2024 -- and yet they all bottomed on the same day as the mega-cap indices. We know that the advance/decline (AD) lines of the S&P 500, S&P 100, and Nasdaq 100 all made new all-time highs (ATHs) earlier this year and, more importantly, before price printed an ATH. Interestingly, the AD lines of the major averages and the small-cap indices mentioned above all peaked in November 2024. While most of the price damage for the indices occurred during the second half of February and into early April, the AD lines of the major indices weren't hit nearly as hard as price. That indicates that much of the decline was caused by the larger-cap stocks. Still, when we examine the percentage of stoc