Formula & Calculation Mechanism
RSP ETF Price divided by SPY ETF Price
Rising ratio indicates mid-and-small cap broader market outperformance. Falling ratio signals mega-cap tech dominance.
Market Impact on US Equities & S&P 500
RSP outperformance confirms healthy economic expansion.
Historical Precedents & Bull/Bear Regimes
RSP/SPY declined significantly during 2023-2024 Mag 7 rally.