Weekly Pending Setups Report | New Setup RSP

We have one new setup this week, while VTV, EWZ, XLI and TLT turned active last week given the rally in stocks and bonds.

New Setups

• RSP

Asset Classes

Equity ETFs

• Invesco S&P 500 Equal Weight ETF (RSP): New Setup
• Vanguard Value ETF (VTV): Pending>Active (Turned active 11/2).
• SPDR S&P 500 Industrials ETF (XLI): Pending>Active (Turned active 11/3).
• iShares MSCI Brazil ETF (EWZ): Pending>Active (Turned active 11/3).

Fixed Income ETFs

• iShares 20+Year Treasury Bond ETF (TLT): Pending>Active (Turned active 11/2).

Equity ETFs

New Setup: Long: Invesco S&P 500 Equal Weight ETF (RSP)

-Bullish divergence setup with price making lower low and RSI higher low at the end of October compared to beginning of October.

-A break of the downward trendline extending from August would activate the buy signal. Price is currently near that level as it recently tested the 50-DMA and turned slightly lower.

-Target 1 and 2 align with horizontal resistance levels, while target 3 would see price rally to the 2023 highs.

-Macro catalyst: A year end rally could prompt the equal weight index to outperform if breadth improves and many stocks participate as opposed to just the mega cap tech names.

-A potential stop loss is placed slightly below current levels.