This market aint dead..... just taking a breather. After a record run, a pullback was due...
In my opinion, the
$RSP is key. The equal weighted counterpart of the
$SPY is a better reflection of what the market is doing because it's not skewed by the Mag7 and other heavy weights.
You can see the
$SPY had an extended run largely driven by the AI narrative and large cap stocks driving it higher, the pullback will naturally be deeper. As long as the
$RSP stays above the base pivot which is now support, all should be well. From my POV this looks like a rotation in the making.
I'm keeping a close eye here. My whole capital deployment strategy is based on these two charts in relation to each other.