Fu Peng: Beneath the Strong Facade of US Stocks, Danger Looms Like a Stack of Eggs; Once the Breadth Limit Is Triggered, Volatility May Rapidly Rebound

BlockBeats news, October 20 - Fu Peng, Chief Economist of New Fire Group, pointed out in an article that the current US stock market (represented by the S&P 500) shows a clear phenomenon of market cap concentration bubble + severe divergence in market breadth. "Weighted stocks (large-cap blue chips) under the support of passive funds and herd behavior have propped up the composite index to appear 'calm and steady,' but the vast majority of stocks in the entire market are actually experiencing deeper technical pullbacks. Market breadth has approached its extreme critical point, and volatility suppression could be broken at any time."