Weekly S&P500 ChartStorm - 5 July 2026
This week: bull market broadening, lag 7, equal-weighted vs cap-weighted, value vs growth, financials, micro caps, bubble watch (AI stocks), REITs
Welcome to the latest Weekly S&P500 #ChartStorm!
Learnings and conclusions from this week’s charts:
The equal-weighted S&P500 continues to make new highs.
The cap-weighted S&P500 remains stuck (thanks to “lag-7”).
The S&P500 Value index also chalked up new highs last week.
Micro caps and financials are putting in promising price action.
The USA, Korea, and China have one bubbly thing in common.
Overall, the bull-market-broadening and bullish rotation theme continues to play through, with the old leaders lagging, and everything else starting pick up. This is a constructive development, but there are a few things to keep an eye on…
ICYMI: 10 Charts to Watch in 2026 [Half-Time Update]
1. Bull Market Broadening: the bullish broadening theme continues to play out. Below you can see the SPXEW (equal-weighted S&P500) making a strong push higher, while the cap-weighted S&P500 is still stuck in consolidation mode. Meanwhile 200-day moving average breadth continues to trend higher.
Source: MarketCharts.com
2. Lag-7: meanwhile the Mag-7 continue to lag behind vs the S&P493.
Source: MarketCharts.com
3. Equal vs Cap Weight: the equal vs cap weighted S&P500 relative performance line sure is looking like it’s attempting to put a bottom in. This is a positive sign for the bullish rotation theme.
(however: coming from such a one-sided market, the risk is you get a situation like 2000 where equal-weight outperforms by falling less when the previous leaders come unstuck; i.e. a bearish rotation)
Source: Topdown Charts Professional
4. Value vs Growth: there are also (albeit less convincing) signs that the value vs growth relative performance line is also attempting to turn.
Source: Topdown Charts
5. Value ATH: and on that note, the S&P500 Value index just quietly made a new all-time high last week (whereas the S&P500 Growth index peaked a month ago).
