How the S&P 500 can be at record highs, while the market remains oversold

TL;DR

The S&P 500 achieved a new all-time high, but most stocks within the index have lagged since the previous record on August 13.
The market rally is narrow, with a few megacap stocks like AMD, Micron, and the 'Magnificent Seven' responsible for the index's gains.
The S&P 500 Equal Weight index, which treats all stocks equally, shows that three-quarters of S&P 500 stocks were down between August 13 and Monday.
Market momentum indicators, like the S&P Short Range Oscillator, show oversold conditions despite the S&P 500's rally.
Rising interest rates and high oil prices favor megacap tech companies involved in AI, while economically sensitive sectors like transportation are struggling.
A potential shift in oil prices or a decrease in bond yields could lead to a rotation back into other beaten-down sectors.

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