Hey, Ross here:
Although the Nasdaq closed lower yesterday…
The S&P 500 eked out a tiny gain to post another new all-time high.
But under the surface, the story was a little different.
Chart of the Day
The Equal Weight S&P 500 Index (RSP) posted a 1.27% increase yesterday.
In contrast, the S&P 500 only posted a 0.06% gain.
In other words, the smaller stocks were performing much better than the megacap stocks that make up a disproportionate amount of the regular index.
That’s strength under the surface.
The RSP’s price action is also showing a textbook consolidation pattern…
One that often comes right before a breakout.
A breakout in the RSP means a breakout for many of the smaller stocks most traders aren’t paying attention to.
That’s what we’re preparing for.
That said, this doesn’t mean the breakout will come tomorrow.
There are critical nuances – which I elaborate on below.
P.S The market moves fast, so you want to always stay ahead. Text the word “trade” to 87858 and ensure you never miss this newsletter again.
Insight of the Day
We are likely to see some choppy price action within that consolidation zone before any breakout.
The price action yesterday shows the RSP touching the top of the consolidation zone.
So, it could start breaking out today.
But it’s also likely that we may see the price fluctuate and pull back within the consolidation zone a bit longer first…
Especially with Trump’s tariff deadline (the so-called “T-Day”) around the corner.
But here’s something important to keep in mind.
The RSP is still an index – the average performance of hundreds of stocks.
Some of those stocks will break out ahead of the index.
In fact, those stocks may break out even as the index pulls back…
Meaning we can – and should – go after them now.
That’s why later this afternoon at 3 p.m. Eastern…
I’m going LIVE to show you a strategy that will allow you to target these leading stocks…
Even if Trump’s tariff deadline throws the market into turmoil.
So click here to guarantee your seat at my live presentation if you haven’t already…
And I’ll see you later today at 3 p.m. ET.
P.S. If you’re planning to attend on a mobile device, make sure you download the presentation app now so you don’t miss anything when it starts. See you there.
iOS: https://apps.apple.com/us/app/goto/id1465614785
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Customer Story of the Day
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Editor, Stock Surge Daily
