Back to top

Real Time Insight

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at or call 800-767-3771 ext.  9339.

For a couple of months I've been talking about the strength of what I call "the other 2,400 stocks" as comprised by the Russell 2000 Small Cap index and the S&P MidCap 400.

These indexes proved themselves during this January rally by making new all-time highs even before the S&P 500 broke out above 1,470. To me, this was proof of breadth and depth in this cyclical bull's ability to make new highs for two reasons:

1) Economic optimism among analysts and portfolio managers

2) Market strength where new highs were not being led by mega caps

But another index I occasionally look at is the S&P 500 Equal Weight, which can strip out the distorting effects of an Apple or an Exxon and let all the players contribute. So instead of the concentration of price movement being typically reflected by the the S&P 100 (OEX), the biggest stocks in the US essentially, there is equal weight given to the bottom 400.

That's where I get the 2,800 in my title: RUT + MID + the bottom 400 of S&P = 2,800 stocks.

Anyway, let's let a price chart do the talking. Below is RSP, the tracking ETF for the S&P 500 Equal Weight index. It is shown on the right hand scale vs. the traditional SPX (yellow line and left hand scale).

The red line at $53 roughly represents the all-time highs for SPX-EW back in the summer of 2007. So that means that the EW has made a 7.5% surge above its all-time highs just this month.

I think this bodes well for the S&P to hit new highs above 1550 and the Dow above 14,000. This may not happen in the next few weeks since we've just had a terrific run already. But I bet it happens this quarter.

What areas of economic, sector or industry strength are you seeing that support this market view?

5 Stocks to Double in 2014

Today, you are invited to receive a free Special Report from Zacks Investment Research. It reveals five companies that could gain +100% and more in the next 12 months.

One is set to ride a little-known All-American energy boom. Another is a chip maker looking for big gains through Google Glass. Another could be the next alternative energy "Tesla."

Close This Panel X

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%