Are The Indices Hiding Deeper Problems?

There is a grand suspicion that U.S. stock indices are hiding deeper problems. The crux of this idea is that only a handful of large capitalization companies have had positive performance as of lately. These selective positive performances have pushed up the indices while the rest of the companies have underperformed. This hypothesis is made possible by the fact that U.S. indices like the S&P 500 are market capitalization weighted and not equally weighted.