“The Market Is Getting Defensive. But Not Where You Think”
S&P 500 Equal Weight Index shows constructive technical momentum with price above 21-day SMA, positive RSI, and MACD crossover indicating a new uptrend.
We see the S&P 500 Equal Weight Index continuing its advance, and that is good news. It has risen back above the 21-day simple moving average. Our Relative Strength Index (RSI) is entering positive territory, which is very constructive.
Let's take a look at the MACD indicator, where the black line has crossed over its red counterpart. This is often a signal to start a new uptrend, and you would like to see the gap widen between the red signal line and the black MACD line.
This will tell you that the momentum is increasing.