Market Breadth and Nvidia's Impact on S&P 500

The market breadth has been deteriorating with fewer stocks participating in the upside of the S&P 500, mainly driven by mega-cap stocks like Nvidia. The rise in Nvidia alone is propping up the S&P 500, leading to concerns that once Nvidia peaks, it could mark a high point for the S&P 500 as well. The exponential rise of Nvidia is a significant factor to watch as historically, excesses in one direction tend to lead to an excess in the opposite direction. As Nvidia enters an exponential phase, it could hit 150-160 rapidly. The top 10 companies in the S&P 500 hold a value equal to the remaining 490 companies combined, emphasizing the heavy reliance on a few mega-cap stocks in the market. If these top companies, like Nvidia, stumble, it can significantly impact the overall market performance, possibly leading to a correction. The prediction is for the market to surge towards highs in mid-July, followed by a period of stagnation into the upcoming election cycle.