Chart of the Day – Monday, April 15, 2024

Oops and deep correction? Or just a false start before a move higher? $RSP pic.twitter.com/bqjBEv8nGl

— Alfonso Depablos, CMT (@AlfCharts) April 15, 2024

 Today’s Chart of the Day was shared by Alfonso Depablos (@AlfCharts).

• Breadth looked healthy a few weeks ago, but it’s taken a turn for the worse. The Equal-Weight S&P 500 ($RSP) is coming off its worst week since September (-2.56%), falling another -0.86% today.

• Alfonso points out that $RSP is at risk of a failed breakout after closing below the prior cycle highs today. Failed breakouts can get ugly quickly. As they say, “From failed moves come fast moves in the opposite direction.”

• The S&P 500 is still comfortably above its respective breakout level, but Equal-Weight has downside risk if $RSP is below $160.

The takeaway: The market is vulnerable to broad-based weakness if $RSP fails to recapture its former highs in the coming days.