Chart of the Day - Thursday, January 16, 2025

🏆 Today's Chart of the Day was shared by Michael Nauss (@MichaelNaussCMT).
 

• All seven components of the Magnificent 7 closed lower today, while the majority of S&P 500 stocks closed higher. 
   
• The Equal-Weight S&P 500 ($RSP) outperformed by the widest margin in six months today, rising +0.8%, while the S&P 500 fell -0.2%.  
   
• Breadth has been abysmal since the beginning of December. However, Michael points out we're seeing a healthy rotation out of the Mega Cap leaders. 
   

The Takeaway: While the S&P 500 closed slightly lower today, the Equal Weight S&P 500  ($RSP) outperformed by a wide margin, indicating healthy rotation into the broader market.