$SPX (S&P 500) vs $RSP (S&P 500 Equal Weight)

AMEX:RSP   Invesco S&P 500 Equal Weight ETF
$SPX (S&P 500) vs $RSP (S&P 500 Equal Weight) – (Net High/Low +17)

The stock market came into this shortened week of trading on a three-week losing streak. It looked on Tuesday as if that streak might be extended to four weeks, but there was an abrupt turn in sentiment that powered a strong move in the major indices over the last three sessions from 3,900 support level. The losing streak was eventually broken and both the $SPX and $QQQ had reclaimed a posture back above their 50-day moving averages.

The resilience to selling efforts in the face of negative developments has fostered a sense that the market has priced in the near-term rate hikes already after enduring three, consecutive weeks of losses. At Tuesday's low, the $SPX was down 10.1% from the intraday high it saw on August 16, so there has been an added sense that the market had gotten oversold and was due for a technical bounce.

At the current juncture, the mid-term downtrend remains intact as $SPX remains trading below its declining 200-day moving average, and AVWAP from all time high.

The support to watch for this week remains at 3,900 level, the recent lowest level.

Bull Case: Reclaim above 4,212 AVWAP from all time high. Immediate resistance at declining 200-day moving average and downtrend line.

Bear Case: Breakdown of 3,900 recent low. next support at 3,800.


The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.