‘Russell 2000’ Archive

Small is the new Big- Russell 2000 now facing historical resistance!



The Power of the Pattern shared last October that the Russell 2000/S&P 500 ratio was on multi-year support, as small caps had been weaker than large caps for the prior 10-months. The ratio on support was suggesting this pair trade- Long Russell 2000/Short S&P 500.

The lower right inset chart …

Small Caps working on breakout similar to Mid Caps!

mdyiwm161breakoutsmarch16CLICK ON CHART TO ENLARGE

I applied Fibonacci extension levels to the 2002 lows and 2011 highs in Mid Caps. The 161% Fibonacci extension level looked to create some resistance, as Mid CapsĀ chopped around this level for 5-months last year. Mid-Caps finally broke above this level and are pushing higher.

I applied Fibonacci to …

Small caps on the verge of a major breakout?

leadershippast100daysmarch13CLICK ON CHART TO ENLARGE

The above table looks at returns over the past 100 days (actually 103 days). It feels like the broad market has done OK of late, yet when looking at performance, the S&P has been rather flat. Actually really flat (0%), according to data coming from Yahoo finance.

The Russell 2000 …