Moving down means leaders strengthening and breadth weakening.
Moving up means laggers catch up with leaders!
So after a good move down.. a move up usually means strong moves down in SPX.
Moving up can also be seen as sign of strengthening breadth and a bottom.
This is part of a series of charts which I will posting for the reader to make up his/her mind based on the weight of the evidence.
Do note, these are weekly charts which means the implications of which will occur over the next 12, 18, 24, 36 months.
I used RSP over the standard ES1! charts so as to eliminate the bias towards FANGs stocks in the general...
Very bullish chart but don't forget lots of shares have to re-balance after such a huge move this past month. It's too difficult to choose the laggards thinking they will be bought but looking at the leaders one has to assume many need to be sold.
This is something to keep an eye on. Equal weight is losing steam vs the index. Usually an indicator of future top coming. This can diverge for a long time. See 2000 top. 2007 divergence was not near as long as that. I don't think you'll get near the heads up as those prior two instances.