Market Overview - The S&P 500 is starting 2026 positively, following three consecutive years of double-digit gains [1] - The market dynamics of 2023-2025 were primarily driven by tech, growth, and the "Magnificent Seven" stocks, but many other sectors lagged behind [1] Market Participation - Market breadth has significantly improved this year, with previously underperforming sectors such as energy, materials, small-caps, and value stocks contributing to gains [2] - Currently, 63.2% of S&P 500 stocks are outperforming the index, marking a rare occurrence where over 60% of stocks exceed the index performance [4] Historical Context - High participation rates in the market are generally associated with healthier market conditions, although recent years have shown that this is not always necessary for market performance [3] - Historical data indicates that high participation rates can coincide with recessions, as seen in the early 1980s and early 1990s, where high participation was followed by significant declines in the index [6][7]