Is Major Stock Market Index Warning Trouble Ahead?
Chris Kimble | Oct 26, 2023 02:58PM ET
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.
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