Your post does not support a lack of breadth. You’re only pointing out that a weighted index is... wait for it... Weighted.
I think it does mark lack of depth and breadth when considering the notional value of the index. Also, 62% of stocks above the 50 DMA doesn't sound particularly strong when the index is sitting just below the ATH.
breadth doesn't matter anymore. - already stated the reason with AI - big guys have data, small guys can't complete; - when the speed of information accelerates, so does the speed of money and profit, the flow of money to the economy of scale. need to look at what is really going on here.
in a different thread I talked about 'super cycle' and financial freedom. it is a challenging task to follow the trend when the super cycle is that long... we are talking maybe a 20-year cycle from the bottom of the 2008 crash, to the full scale application of AI and towards singularity, with unimaginable break thrus coming our way.. yet in the middle of the cycle, because price makes new high after new high, backward looking people get more and more nervous.. and once they get off the train, it's virtually impossible to get back on. I talked about super cycles in real estate, in SF, Vancouver, Toronto, Shanghai etc... equity super cycles are even more difficult to hang on to as the exit is only a click of the sell button. the touted advantage of stock's liquidity, is actually the average investor's worst enemy. this is also Warren Buffett's view. Running out of steam? I say we are just getting warmed up. stay the course - play the long game, the big game, make the big money... that's how financial freedom is achieved.
I have mentioned this many times, most don't even understand that this is more of a problem than a good thing.....having only 4-5 stocks carrying the entire NDX 100 is a huge red flag but let everyone Believe this can keep going....what they don't understand is law of large numbers!!!!
this question is fundamentally no different from the first post. but, some deeper thinking is needed here. - from fundamentals and valuation, I have made many posts in the bitcoin price thread... bottom line is there is no comparison from that angle. - another key difference is the retail (aka dumb money) sentiment. check fxcm.. retail is basically all-in at this point on gold and btc.. this sentiment is very 'comfortable' for retail... but that is actually a death sentence for both. currently retail is not even close to full participation.