S&P 500 Equal Weight (RSP)

S&P 500 Equal Weight (RSP) rebounds after holding key support at 185

The S&P 500 Equal Weight ETF (RSP) defended major tactical support at the October 10 low near 185, forming a bullish engulfing pattern on November 6–7. Today’s upside follow-through confirms that signal, suggesting a successful test of support.

The next hurdle is reclaiming the declining 13-, 26-, and 40-day moving averages, which cluster between 188.59 and 188.88, followed by filling the October 29 downside gap at 190.13–190.46. Failure to reclaim these resistance levels would increase the risk of a double top from the October highs at 192.31–192.33.

Chart 1: S&P 500 Equal Weight ETF (RSP): Daily chart with moving averages

RSP remains within a bearish (aka lagging) trend vs. the S&P 500

The RSP has up ticked versus the S&P 500 (SPX) so far in November, but this occurs within a bearish (aka lagging) trend relative to the SPX.

Chart 2: RSP relative to the S&P 500: Daily chart with moving averages