• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock S&P 500 Equal Weight ETF Gains Strength
Stock

S&P 500 Equal Weight ETF Gains Strength

by July 30, 2024
by July 30, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

The S&P 500 Index is a capitalization weighted stock index. Many of the lesser capitalization blue-chip stocks that compose these 500 companies have been performance laggards. Though smaller companies in the index, these corporations are among the bluest of the blue-chip stocks. These prestigious corporations have been overshadowed by the immense mega-capitalization companies that have been receiving attention from institutional and individual investors. For the most part, these other and forgotten stocks have better valuations and dividend yields as they have been somewhat neglected by Wall Street.

The equal weighted S&P 500 Index ETF (RSP) provides a perspective that highlights these smaller blue-chip stocks in the index. Does this equal weighted index reveal a market story obscured by the mega-cap dominated S&P 500 Index ($SPX)?

S&P 500 Equal Weight ETF (RSP), Point & Figure Chart Study

S&P 500 Equal Weighted ETF (RSP) PnF Chart Notes:

In ’22 an Accumulation Structure began to form.Markup began in ’23 and still continues.Three Horizontal PnF counts are estimated here.Two partial counts confirm each other in the $186 price zone.The entire width of the structure counts to $260.

NASDAQ 100 Index ($NDX) with Relative Strength to the S&P 500 Equal Weight ETF (RSP)

This daily chart of the NASDAQ 100 Index ($NDX) illustrates the start and end of the second quarter rally. A final ThrowOver of the channel line clocks in just as the quarter is ending and the third quarter is beginning. A sudden and sharp reversal is evidence of the rotation away from this Mega-Cap dominated index and into the broad list of blue chip stocks in the S&P 500 Equal Weighted Index. The Relative Strength line clearly reveals the shift.

Broad market rotations can destabilize markets as funds flow away from prior leadership toward new investment themes. Watch for emerging leadership from industry groups and stocks while markets are generally correcting. Point & Figure horizontal counts can help greatly with price projection estimates. But we must keep in mind that PnF cannot estimate the time needed to reach potential price objectives.

All the Best,

Bruce

@rdwyckoff

Prior Blog Notes: At the end of June, I published a NASDAQ 100 PnF chart study as it was reaching price objectives. The price of the objective range was 19,600 / 20,800. On July 10th the $NDX peaked at 20,690.97, just as the new quarter was beginning. (click here to view the chart study). 

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional. 

Wyckoff Resources:

Additional Wyckoff Resources (Click Here)

Wyckoff Market Discussion (Click Here)

You Might Also Like
  • Top AI Add On Plays After Nvidia’s Strong Earnings Report
  • Semiconductors are at CRITICAL Level!
  • Who Let the DOG Out?
  • The 2 Best Holiday Gifts You Can Give Your Kids!
Share
0
FacebookTwitterPinterestWhatsapp

previous post
The first Fed interest rate cut in years is on the horizon. Here’s what you need to know.
next post
VP Kamala Harris could name one of these 5 Democrats as her running mate

You may also like

SHOP Stock Ready to Surge: An Options Strategy to Take...

September 18, 2024

How to Find the Market’s Strongest Stocks in Just Four...

February 4, 2023

Trade Pullbacks — 3 Things to Know

May 11, 2023

Substantial Deterioration In Number of IT BUY Signals

August 8, 2024

The S&P 500 Showing More Bullish Signals, Watch This Key...

January 22, 2023

Why Try To Call Tops And Bottoms? It’s Easy!

April 9, 2023

Super Cycles Do Not Just Fade Away

January 5, 2024

5 Stocks To Save The Planet

January 21, 2023

UPSidedown Earnings Sink Stocks

April 26, 2023

Secular Bull Market Continues, But With Major Rotation

November 9, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout, pulls outlook

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025
    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against strict U.S. chip controls

      May 7, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,630 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,339 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,320 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,302 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,186 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout,...

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    The Best Five Sectors, #12

    March 24, 2025

    The Wisdom of Jesse Livermore, Part...

    May 24, 2023

    Commodity and Healthcare Related ETFs Lead...

    March 7, 2025
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here