Equal-Weighted S&P 500: Entering Oversold Territory, Says Fairlead Strategies

Fairlead Strategies highlighted the strength observed in the S&P 500 index, driven by large technology stocks. However, the technical research firm noted a partial pullback in S&P futures this morning.

Fairlead maintains a near-term neutral outlook for the market, indicating a loss of short-term bullish momentum. Nonetheless, analysts pointed out that medium-term indicators still suggest a potentially strong finish for 2024.

The analysis from Fairlead Strategies also drew attention to the S&P 500 Equal Weight ETF approaching its 50-day moving average of around $182. According to the firm, the ETF is nearing short-term oversold conditions, which similarly affect more than 40% of S&P 500 stocks across most sectors.

This trend indicates that the average stock may stabilize in the coming days and could potentially prepare the ground for another upward move as the year progresses.