Get 40% Off
🤯 Perficient is up a mind-blowing 53%. Our ProPicks AI saw the buying opportunity in March.Read full update

Is Major Stock Market Index Warning Trouble Ahead?

Published 10/26/2023, 02:58 PM

When evaluating the stock market, looking at several key indicators to evaluate risk and positioning is good. And sometimes, those indicators are actual stock market indices or index ETFs.

In today’s case, it’s an index ETF.

Today, we look at a long-term “monthly” chart of the S&P 500 Equal Weight ETF (NYSE:RSP). Here, we get the performance of all 500 stocks equally weighted (market cap out the window). This gives us a good barometer of how the average S&P 500 stock is performing.

Unfortunately, we can see that RSP is breaking below its 3-year MA and 2-year rising trend support line at (1).

This is sending a warning that performance may not be up to snuff over the coming months. Stay tuned.

Latest comments

Put cash in CD is better than stocks
A chart equals a thousand words. Thanks a lot!
Nope. Unless you listen to a technical analyst. A monkey could do a more accurate analysis.
Short and sweet and crystal clear - thanks Chris!
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.