Roper (ROP): Bearish pennant after a big top

Question: Can I get your view on ROP chart... pretty sure what your response will be but always helpful to have the chart view and your thoughts. Thanks Steve.

Roper Technologies (ROP) lost its leadership status relative to the S&P 500 (SPX) after topping out versus the broader U.S. equity market in late 2023. A December 2023-April 2025 relative price bearish divergence followed by an August 2025 breakdown vs. the SPX preceded the breakdown from a late 2023 into late 2025 absolute price topping pattern on the decline below the pattern neckline and 200-week moving average near 500-495. This big top pattern projects downside to 420 and 403 on ROP.

The breakdown from a late October into early January bearish pennant remains firmly in place below 442, reinforcing this downside risk. In addition, flags and pennants tend to mark the mid-point of a move. If immediate downside follow-through from this pennant pattern occurs, we cannot rule out a deeper drop back to the 2022 lows from 369 to 356.

It would take strength above the pennant pattern highs near 454-456, with the declining 13-week moving average near 452, to provide some stability for ROP.

Chart 1: Roper Technologies (ROP) (top) and relative to the S&P 500 (bottom)