New 52-week highs point to rotation

In summary, net new 52-week highs improve as the S&P 500 (SPX) rebounds, but a key threshold remains.

The SPX has staged a three-day rebound off Friday’s (11/21) intraday low of 6521, accompanied by an encouraging expansion in new 52-week highs relative to new 52-week lows—even with the index still below its late-October record of 6920.

Recent editions of The Sector Edge have highlighted the ongoing rotation beneath the surface of the U.S. equity market. The improving spread between new highs and new lows within the SPX reflects this rotation and supports the case for a healthier market backdrop.

However, one key hurdle remains: net new 52-week highs need to exceed the late-July peak of 48 to confirm that bullish rotation is strengthening and/or that market breadth is broadening. A breakout above this level would increase the likelihood that the U.S. equity rally can extend into early 2026.

Chart 1: S&P 500 (top) and the spread between new 52-week highs and new 52-week lows (bottom)