The S&P 500 is up around 10% for the year. But if you discount the massive gains from the index's seven top companies, the S&P would be slightly down, senior index analyst Howard Silverblatt said.
This indicates a weak market breadth; the percentage of companies in the S&P that are driving gains versus those that are down, something that demonstrates a lack of confidence in the market. Investors are excited about a select few tickers, but they're not feeling great about the market as a whole.
Jim Cramer, however, really doesn't mind the current narrow market.
DON'T MISS: Jim Cramer Says One Sector Has Single-Handedly Saved the Markets
"I'm sick and tired of hearing about how we've got a narrow market, a market with only a handful of winners driving the performance," Cramer said on 'Mad Money.' June 1. "The implication being that a narrow market is a precarious market. I've had enough. The Magnificent Seven are the real deal. So what if they lead the way? A win's a win."
The famed CNBC host and investor said he doesn't really care that the bulk of these indexes are not doing well -- not every company can be a "hall-of-Famer."
Cramer's crew of heroic tech stocks is led by (NVDA), which is up 159% for the year, (META), up 120%, (TSLA), up 66%, (AMZN), up 44%, (GOOG), up 39%, (MSFT), up 38% and (AAPL), up 37%.
Four of these seven companies are some of the largest companies in the world, with market caps of more than $1 trillion -- Apple ($2.8 trillion), Microsoft ($2.5 trillion), Alphabet ($1.6 trillion) and Amazon ($1.3 trillion). Nvidia has flirted with a market cap in excess of a trillion dollars but has yet to cement it.
"People act like the strength for these companies is a bad thing," Cramer said. "Shouldn't Microsoft be rewarded for doing fabulously during this tech slowdown?"
This outlook goes against one of Wall Street Legend Bob Farrell's rules for investing: markets are weakest when they narrow to a handful of big names, and strongest when they are broad.
Get investment guidance from trusted portfolio managers without the management fees. Sign up for Action Alerts PLUS now.
