Is There A Dent In The SPY's Armor?

The SPDR S&P 500 ETF Trust SPY has spent the last few days consolidating, but the rally is narrowing. This is a sign of weakness.

What To Know: In the second week of May, over 500 companies that trade on the NYSE made new 52-week highs. This week, less than 50 did.

This is because as most stocks head lower, the investors who sold them look for safer havens. They tend to buy the big, well-known companies.

As a result, companies like Microsoft Corporation MSFT, Alphabet Inc. GOOGL, and Facebook, Inc. FB make all-time highs, while the majority of the other stocks that trade on the NYSE trend lower.

SPY has been consolidating or trading sideways.

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