Newbie Traders Are Big Winners in High-Velocity S&P 500 Breakout
- Retail boom has become a key force behind market’s recovery
- Cash piles have come down but still have further room to fall
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The S&P 500’s surge to a record is coming at a torrid pace, generating an almost unprecedented level of momentum for a market in this stage of a rally. It’s more affirmation for individual investors who have been flocking to equities all year.
Surging past its February high of 3,386.15, the equity benchmark has jumped more than 12% above its average price in the past 100 days -- velocity it has exceeded only twice before at similar breakouts in data going back to 1927. The final push came as retail traders rose up to become the biggest presence in stocks behind market makers, a show of force that has helped lift the S&P 500 more than 50% in five months.