S&P 500 Near Highs Yet 99 Constituents Hit 60-Day Lows, Rare Breadth Divergence Echoes 1999 and 1929

The S&P 500 sits within 1% of its 52-week high, but breadth has deteriorated sharply: 99 index members hit 60-day lows over the past three sessions versus 28 hitting 60-day highs, with 77 at 120-day lows against 22 at highs, according to new data. Fewer than 30% of constituents trade above their 50-day moving averages, indicating gains are driven by a handful of megacaps while most stocks already correct. SentimenTrader founder Jason Goepfert called the divergence rare, citing only December 21, 1999, months before the dot-com peak, and July 23, 1929, shortly before the Great Crash, as historical parallels. Goldman Sachs sentiment indicator fell to negative 0.9, a more-than-one-year low. DoubleLine CEO Jeffrey Gundlach said he wants to exit AI holdings, arguing valuations remain elevated and the narrative is cracking. He stopped short of predicting timing or shorting the index.