The Value Line Arithmetic US stock index closed the week at all-time highs, weathering the Jan-Feb double digit correction, reflecting the strength and resiliency of this bull market.
The SP500 index, while not quite as strong as the Value Line, sits just under its January high. Why the difference? The Value Line Arithmetic Composite Index represents a larger slice of the US market as it holds almost 1700 stocks vs 500 for the SP500. Most of the difference is smaller cap stocks which have recently outperformed. Additionally, each company’s shares are held in in equal amounts (equal weighted) rather than being cap weighted. Being the truer measure of the US stock market, the good news is the Value Line index is showing relative strength and broad breadth which reflect the internals of a very healthy stock market.