Updated

An options volatility tracker generated a 'spike peak' buy signal for U.S. stocks for the first time in months, even as internal market breadth indicators remain negative. The divergence highlights a split between technical market internals, which suggest narrowing participation in the rally, and options-market positioning, which points to renewed bullish sentiment among traders. Analysts noted the conflicting signals could foreshadow near-term volatility as investors weigh whether a small group of large-cap stocks can continue to carry the broader index higher without broader participation.