S&P 500 Breadth Hits Four-Year High; Equal-Weight Outperforms; FOMO Adds Caution

S&P 500 breadth reached a four-year high as the equal-weight ETF outperformed the cap-weight index for the first time since 2022. Advancers led decliners 2:1, 57% of stocks above 200-day moving average, and the risk-on composite hit 100%. The valuation gap (20x vs 17x forward earnings) suggests room for further rotation into value and small/mid caps. This confirms a broadening rally beyond mega-cap tech, supported by the weak jobs data and falling oil prices. However, FOMO is now a distinct driver per options metrics—call/put ratio at 4-year high, VIX rising with stocks—adding a cautionary layer. CPI/PPI data this week will test whether the broadening can hold.