Based on the market action of the last year, most investors probably would’ve been better off doing nothing.  Bull and bear markets are generally defined by whether or not the SP500 is trading above or below its 200-day moving average.  Over the last year, the SP500 has vacillated above and below the average for short periods without a sustained trend.

While the SP500 has held up relatively well due to a few mega-cap names holding up the index, the majority of stocks have been in a bear market for most of the year.

By comparing the SP500 and Nasdaq 100 to their equal weight counterparts, you can notice the enormous impact a select few names have had on the two indices.

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Typically, this type of bearish action that we are witnessing on most individual stocks trickles down to the actual indices, and the indices might catch-up to the stocks. However, one must keep an open mind that maybe individual stocks may start to act better and the market’s breadth will broaden.  As of right now I’m seeing subtle improvement on some individual names.