Investor confidence is rising in companies of all sizes, bolstering Wall Street ahead of historically volatile September. 64% of Russell 3000 members trade above their 200-day moving average, the highest since December, signaling broad market participation. This trend reduces the risk of a major market top forming, according to Oppenheimer & Co.

Breadth improvement in the stock market is reassuring for investors as the rally broadens beyond tech giants. About 67% of S&P 500 stocks are above their 50-day moving averages, with 68% above their 200-day moving averages. This shift in market participation is seen as positive by analysts at Charles Schwab & Co.

While market breadth has improved, the S&P 500’s gains have outpaced its equal-weight peer since April. This discrepancy, last seen in 1998, indicates potential challenges ahead despite investors’ current confidence in buying every dip. Narrow technology favorites with stretched valuations may pose risks when the next dip fails to bounce, warns Hedge Fund Telemetry LLC founder Thomas Thornton.

Read more at Yahoo Finance: Improving Breadth Gives Stock Bulls Solace Into Murky September