Market Rotation Analysis: Belski Highlights Limited Market Breadth in Equity Markets

This analysis is based on Brian Belski’s appearance on CNBC’s “Closing Bell” [1] on November 12, 2025, where he expressed concerns that “market breadth is not happening like we thought it would.” The commentary from the Humilis Investment Strategies CEO and Chief Investment Officer carries significant weight given his recent departure from BMO Capital Markets after 13.5 years and 36 years of market experience [2].

The market data from November 12, 2025, provides quantitative support for Belski’s concerns [0]. The Dow Jones Industrial Average gained 0.50% to close at 48,254.82, marking the first close above 48,000, while the S&P 500 declined 0.25% to 6,850.92 and the NASDAQ Composite fell 0.67% to 23,406.46. This divergence suggests a rotation away from technology stocks toward more traditional industrial and value names, but the Russell 2000’s 0.51% decline indicates that smaller companies are not participating as expected in the market advance.

Sector performance analysis reveals significant dispersion that aligns with Belski’s breadth concerns [0]. Communication services emerged as the strongest performer (+1.38%), followed by basic materials (+0.61%) and healthcare (+0.36%). In contrast, the technology sector declined 0.81% while energy fell 1.22%, representing the weakest performance. This pattern suggests selective rotation rather than the broad market participation that many analysts had anticipated.

The current market structure demonstrates continued concentration in specific areas rather than the broad-based participation that typically characterizes healthy market advances. The Dow’s outperformance relative to technology-heavy indices indicates some rotation is occurring, but the underperformance of small-cap stocks (Russell 2000) suggests this rotation is not benefiting the broader market as expected [0].

From his previous interview on November 4, 2025, Belski maintained a year-end S&P 500 target of 7,000 but warned about potential market consolidation [2]. His observation that “markets are rarely linear for long” appears to be materializing in the current market dynamics. The limited breadth expansion suggests that the market may be in a transitional phase where institutional investors are selectively rotating rather than broadly diversifying their exposures.

The strong performance of communication services (+1.38%) versus technology’s decline (-0.81%) indicates that investors are differentiating within the growth sector rather than abandoning growth entirely [0]. This selective approach may reflect concerns about valuation levels in traditional technology names while seeking growth opportunities in adjacent sectors.

The limited market breadth highlighted by Belski presents several important considerations for market participants:

1. Portfolio Concentration Risk
   : Continued reliance on a narrow set of stocks for market gains increases vulnerability to sector-specific shocks and earnings disappointments in leading companies.

2. Rotation Timing Risk
   : The delayed or incomplete rotation could lead to missed opportunities in undervalued segments while potentially creating overvaluation in currently favored sectors.

3. Market Sustainability Concerns
   : Without broader participation, current market advances may lack the foundation needed for sustained upward movement.

Decision-makers should closely track several key indicators to assess whether market breadth is improving:

1. Advance/Decline Ratios
   : Daily breadth indicators to quantify participation levels across the market
2. Small-Cap Relative Performance
   : Russell 2000 performance relative to major indices
3. Volume Analysis
   : Trading volume patterns by sector and market cap to confirm conviction behind moves
4. Institutional Flow Data
   : Money flow trends between large-cap and small/mid-cap segments

The current market environment suggests that participants should focus on quality companies with strong fundamentals across market capitalizations rather than chasing narrow leadership. The selective rotation pattern indicates that investors may need to be more patient with their allocation strategies as the market searches for broader participation.

Brian Belski’s observation about limited market breadth is supported by quantitative market data showing divergent performance across indices and sectors. The Dow’s record close above 48,000 contrasts with declines in technology-heavy indices, while the Russell 2000’s underperformance indicates that smaller companies are not leading the anticipated market rotation [0].

Sector performance reveals selective rotation with communication services (+1.38%) significantly outperforming technology (-0.81%) [0]. This pattern suggests that investors are differentiating within growth sectors rather than broadly diversifying, supporting Belski’s concern that market breadth is “not happening like we thought it would” [1].

The market appears to be in a transitional phase where the expected rotation from mega-cap technology to smaller companies is occurring more selectively than anticipated. Belski’s previous warning about market consolidation [2] appears to be materializing, suggesting that investors should prepare for continued volatility as the market searches for broader participation patterns.