After NVDA Earnings Report The Stock Market Internals Are Likely To Narrow

The markets are closed today for Memorial Day, but what I want you to notice today, in the above chart, is the indicator right below the price chart, showing the number of new highs and lows being made inside of the S&P 500. The green bars are the number of new 52-week highs.

Notice how this month the green bars are much smaller than they had been from December through April.

This means that, as the S&P 500 made new highs this month, the number of actual stocks inside the S&P 500 doing so too grew smaller.

This is what happens when a stock market rally narrows, so fewer stocks are doing all the lifting. Until this month, the green bars were getting bigger, showing that the rally was growing inside the S&P 500, spreading to more and more stocks.