Chart of the Day – Friday, August 23, 2024

Equal-weighted S&P 500 index ETF closes at all-time highs. Proving again, it’s not just 7 stocks. $RSP pic.twitter.com/llymFYSJ4x

— Michael Nauss, CMT, CAIA (@MichaelNaussCMT) August 23, 2024

Today’s Chart of the Day was shared by Michael Nauss (@MichaelNaussCMT).

• The week ended strongly, with all four major indices rising more than +1%. Small-Caps led by a wide margin, as the Russell 2000 gained +3.2%.

• While the S&P 500 remains -0.6% below all-time highs, Michael points out that the Equal-Weight S&P 500 ($RSP) is already there. This is evidence of a broad and healthy market.

• The Magnificent 7 led the S&P 500 during the first leg of the bull market, but we’re finally seeing strength broaden out as the bull market matures.

Takeaway: While the S&P 500 closed slightly below record highs today, its Equal-Weight counterpart ($RSP) broke out with conviction. Breadth was one of the biggest concerns earlier this year, but participation has dramatically improved.