• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock New Indicator for Your Toolbox
Stock

New Indicator for Your Toolbox

by February 28, 2025
by February 28, 2025 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

As part of our regular market review in the DP Alert, we have begun to notice a very good indicator to determine market weakness and strength. It may not be new to all of you, but we’ve found as of late this indicator tells a story.

We have been tracking the relative strength of the SPY to equally-weighted RSP. When the relative strength line is rising, it means that mega-cap stocks are leading the market. When the relative strength line is falling, mega-cap stocks are taking a back seat.

The chart below shows you what happens when the mega-caps start to slide against RSP. The market itself usually travels lower (as does equal-weight RSP). It doesn’t happen every time, but it happens enough that we should be checking this chart regularly. If you are an Extra member or above with StockCharts.com, you can click on this chart and save it to your own ChartList for monitoring.

Currently mega-caps are underperforming RSP and that has spelled trouble for the market. It did tip upward Friday, but ultimately the relative strength line is in a declining trend. We’ll want to watch for a move out of that declining trend.

Conclusion: Cap weighting has made it important to monitor how the SPY is performing in relation to equal-weight RSP. A declining relative strength line is bad for the market as a whole and that is what we are currently seeing.

The DP Alert: Your First Stop to a Great Trade!

Before you trade any stock or ETF, you need to know the trend and condition of the market. The DP Alert gives you all you need to know with an executive summary of the market’s current trend and condition. It not only covers the market! We look at Bitcoin, Yields, Bonds, Gold, the Dollar, Gold Miners and Crude Oil every day! Only $50/month! Or, use our free trial to try it out for two weeks using coupon code: DPTRIAL2. Click HERE to subscribe NOW!

Learn more about DecisionPoint.com:

Watch the latest episode of the DecisionPointTrading Room on DP’s YouTube channel here!

Try us out for two weeks with a trial subscription!

Use coupon code: DPTRIAL2 Subscribe HERE!

Technical Analysis is a windsock, not a crystal ball. –Carl Swenlin

(c) Copyright 2025 DecisionPoint.com

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. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

DecisionPoint is not a registered investment advisor. Investment and trading decisions are solely your responsibility. DecisionPoint newsletters, blogs or website materials should NOT be interpreted as a recommendation or solicitation to buy or sell any security or to take any specific action.

Helpful DecisionPoint Links:

Trend Models

Price Momentum Oscillator (PMO)

On Balance Volume

Swenlin Trading Oscillators (STO-B and STO-V)

ITBM and ITVM

SCTR Ranking

Bear Market Rules

You Might Also Like
  • Identifying Powerful Trends with This Game-Changing ADX Setup
  • MEM TV: The Easy Way to Uncover Stocks Poised to Outperform
  • Economic Modern Family’s Engine Idles While Growth Goes Fast and Furious
  • How to Pick the Best Technical Indicator for You
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Sector Rotation & Seasonality: What’s Driving the Market Now?”
next post
3 Compelling Charts in the Financial Sector

You may also like

2023 Q4 Earnings Analysis and Projections Through 2024 Q4

April 11, 2024

Major Shift in the Markets! Here’s Where the New Strength...

June 16, 2025

The Stock Market in 2023 is Like Picasso’s Cubist Period

April 7, 2023

Market Looks Toppy

May 23, 2024

VIX Flashes a Key BEARISH Symbol for Stocks!

August 22, 2023

This Industry Just Broke Out And Is Poised To Lead...

November 14, 2024

S&P 500 Selloff: Bearish Rotation & Key Downside Targets!

March 4, 2025

When News Moves So Fast, Stocks Can Stand Still

October 16, 2023

Unlocking Growth: The Importance of Market Pullbacks

January 6, 2024

Growth Stocks Begin Down a Slippery Slope

August 5, 2023

    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

    • Week Ahead: As NIFTY Breaks Out, Change Of Leadership Likely To Keep The Index Moving

      June 28, 2025
    • 3 Stock Setups for the Second Half of 2025

      June 28, 2025
    • Fibonacci Retracements: The Key to Identifying True Breakouts

      June 27, 2025
    • All-Time Highs and An Upcoming Rate Cut: We’re Just Getting Started on This Move Higher

      June 27, 2025
    • How to Improve your Trading Odds and Increase Opportunities

      June 27, 2025

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 3,615 views
    • 2

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

      June 27, 2024 2,895 views
    • 3

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

      August 9, 2024 2,588 views
    • 4

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

      July 10, 2024 2,551 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,429 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,151)
    • Investing (538)
    • Stock (2,640)

    Popular Posts

    • 1

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

      June 25, 2024
    • 2

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

      June 27, 2024
    • 3

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

      August 9, 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

    • Week Ahead: As NIFTY Breaks Out, Change Of Leadership Likely...

      June 28, 2025
    • 3 Stock Setups for the Second Half of 2025

      June 28, 2025
    • Fibonacci Retracements: The Key to Identifying True Breakouts

      June 27, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,151)
    • Investing (538)
    • Stock (2,640)

    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

    Lead Prices Foretell CPI Changes

    April 21, 2023

    The Halftime Show: Energy Sector Continues...

    September 8, 2023

    The Biggest Problem with Technical Analysis?...

    July 24, 2023
    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