📺 The Market Just Broke Out – But There’s A Rare Warning Signal Please ❤️like and 🔁share with fellow growth stock investors @TedHZhang notes that the market is back in an uptrend, and the S&P 500 $SPX / $SPY and Nasdaq $QQQ just delivered major breakouts. But beneath the surface, there’s a rare warning signal we’re watching closely. * Market leaders in our Trend Gauge have upgraded to Up and are in Grow mode, while the short-term trend improved to Neutral with a green sub-arrow. The S&P 500 and Nasdaq are now in full uptrends, breaking out of major bases and moving back above their key moving averages. The S&P held the top of its base and broke through its downtrend line. The Nasdaq did the same, with mega-cap growth, AI and memory names providing much of the leadership. Mega-cap leadership remains exceptionally strong. $MAGS just broke out of a massive one-year-plus weekly base after roughly six tight weeks and pushed to new all-time highs. And the timing could be important: we’re approaching the historically stronger seasonal period beginning around late September and extending through October and toward year-end. But there’s a major divergence underneath the indexes. * The Dow $DIA remains below its 8-, 21- and 50-day moving averages. Mid-caps $MDY and small-caps $IWM are below their 8-, 21-, 50- and 100-day moving averages. $RSP, the equal-weight S&P 500 ETF, is holding around its 100-day but continues to significantly lag the cap-weighted index. In other words, the S&P 500 and Nasdaq are breaking out while large parts of the market remain in short- and intermediate-term downtrends. And here’s the rare warning signal: According to @jasongoepfert, there have been only two other days in history when the S&P 500 rallied at least 1%, moved within 1% of an all-time high, and yet more individual stocks fell to new lows. July 23, 1929 and December 21, 1999. Both preceded historic market declines. That does NOT mean a crash is imminent. In fact, late-stage market advances can produce some of the most powerful and fastest gains of an entire bull market before the ultimate top forms. So the message isn't to fight the breakout. It's to recognize the unusual divergence developing underneath it. * Meanwhile, $VIX remains below 15, another constructive sign. $IBIT is also showing major technical improvement after rallying off its lows, building its first multi-week base above the 200-day moving average and now breaking out again. * But there are still macro headwinds. The dollar is strengthening above its key moving averages, which has been a headwind for small- and mid-caps. Bonds $TLT $BND remain weak as Treasury yields stay elevated. Gold $GLD and silver $SLV remain in downtrends. * For now, the bottom line is straightforward: the S&P 500 and Nasdaq breakouts are meaningful, mega-cap leadership is powerful, volatility remains low, and seasonality is becoming more favorable. But this is still a highly bifurcated market. The next confirmation we want to see is broader participation from the Dow, equal-weight S&P, mid-caps and small-caps. Until then, respect the breakout — but don't ignore the warning underneath it. * Watch this Short video where @TedHZhang breaks it all down in detail 🔽