Market selloffs are becoming increasingly selective:
Over the last 20 S&P 500 down days, an average of 239 stocks finished positive, the highest reading on record.
This is TRIPLE the levels seen during the 2022 bear market and nearly double the 20-year average of 133 stocks.
Since June 1st, 9 of the last 14 down days in the S&P 500 saw ~64% of index names closing higher.
By comparison, only ~32% of down days over the past year saw more stocks closing positive than negative.
This suggests market weakness is being increasingly driven by a smaller group of stocks, with investors rotating rather than exiting equities.
Market breadth is showing unusual strength during periods of weakness.