The Equal-Weighted S&P 500 Rallied From 52-Week Lows To 52-Week Highs In A Month

The S&P 500 Index is up more than 5% over the past month. On an equal-weighted basis, the move is even more impressive.

What Happened:

The Invesco S&P 500 Equal Weight ETF RSP made a new 52-week low of $133.34 on Oct. 27. Since that time, the equal-weight S&P has rallied nearly 19% to reach new 52-week highs of $158.25. The new 52-week high was made on Dec. 14, just 33 trading days after the index hit its lows for the year.

SentimenTrader chief research analyst Jason Goepfert highlighted the historic rally in a post on the X platform on Tuesday.

A lot of people are saying that the "Magnificent 7" stocks are driving the market higher, but he called that notion "a load of click-baity crap."

"The S&P 500 equal-weight index just cycled from a 52-week low to 52-week high in 33 days. The only time since 1957 it happened faster was in September 1982 when the average stock went on to gain 46% over the next year," Goepfert said in the post.

Related News: Small Caps Are 'Outperforming Everything,' Analyst Says: This Rally's Been 'Years In The Making'

Why It Matters:

The Invesco S&P 500 Equal Weight ETF tracks each stock in the S&P 500 index with the same weight, regardless of the company's size. Therefore, Apple Inc with a market cap of more than $3 trillion carries the same weight in the ETF as a much smaller company, like Etsy Inc, which has a market cap of approximately $10 billion.

The broad growth and remarkable speed of the recent rally in the S&P 500 could mean the market is poised for another powerful move in 2024 based on the data in Goepfert's post. The S&P 500 is up approximately 23% year-to-date after falling nearly 20% in 2022.

The S&P 500 has finished positive in seven of the last 10 years. 

RSP Price Action: The Invesco S&P 500 Equal Weight ETF closed Tuesday up 0.85% at $157.20, according to Benzinga Pro.

Image: Buffik from Pixabay