Lowry Mid-Week Commentary Week of May 10, 2023

Followers of the Lowry Analysis know that price can be deceptive. In an era when a handful of giant stocks exert undue influence over the major price indexes, this can be especially true. For example, as of May 4, the top five stocks by weight in the S&P 500 accounted for 20.4% of the index’s market capitalization. Even more eye-opening, the top two stocks, Apple (AAPL) and Microsoft (MSFT) accounted for 13.9%. Therefore, it is no wonder that the S&P 500 recently traded close to its own February high, despite wide swaths of the market being in decline since February. The same is true for the broad-based NASDAQ Composite, where the same two stocks weigh in at 22.0% of the index.