Equal-weight S&P 500 oversold: Fairlead Strategies

Fairlead Strategies took note of the strength in the S&P 500 index , led by megacap stocks. Despite this, the technical research firm observed a partial retraction in the S&P futures this morning.

Fairlead maintains a neutral near-term outlook for the market, citing a loss of short-term upside momentum. However, the analysts indicated that intermediate-term indicators still point to a potentially strong finish for the year 2024.

The analysis by Fairlead Strategies also highlighted the S&P 500 Equal Weight ETF, which is nearing its 50-day moving average at approximately $182.

According to the firm, the ETF is approaching short-term oversold conditions, a situation that is similarly affecting most sectors and over 40% of the S&P 500 stocks.

This trend suggests that the average stock may stabilize in the coming days, potentially setting the stage for another upward push as the year progresses.





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Source: Investing.com