QuiCQ 25/06/2024
Change of Guard?
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"I cannot fear to be wrong because I never think I am wrong until I am proven wrong."
-- Edwin Lefèvre
Today’s chart is increasingly intriguing to me. We spoke about this setup in yesterday’s Quotedian (click here), but the chart below packs most of it into one picture. The top clip shows how the S&P 500 equal-weight index has been rising for five consecutive sessions. This happened whilst the ‘normal’, market-cap weight S&P 500 has dropped for the past three sessions (not shown. Finally, the bottom clip shows that the number of stocks above their 50-day (blue line) and 200-day (red line) moving average has been improving over the past two weeks or so (black box). To me, this starts smelling like a very healthy redistribution, where money is moving from the Mag 7 into the other 493 “nuisances”. Break above the triangle would be final confirmation.
