The following two Year-to-date Daily charts show how much the Russell 2000 Index is lagging behind the Dow 30, S&P 500, and Nasdaq 100 Indices.
The first chart is a simple comparison which shows the percentage gained for each from the beginning of this year.
Small-Cap stocks have, basically, spent a considerable amount of time in negative territory, while trading sideways from the beginning of this year; meanwhile, Technology stocks have been the favourite, followed by stocks in the SPX and the INDU.
The second chart shows the percentage-gained/lost for the RUT, SPX, and NDX relative to the INDU (which is shown as a horizontal line at the zero level).
As you can see, Small-Cap stocks have been in a downtrend since March in comparison with the Dow, while the NDX is still in uptrend, and, although the SPX is still slightly ahead of the INDU, it has made a lower swing high recently, but has yet to make a lower swing low.
Unless buyers step into Small-Caps with any conviction to slough off any risk-taking concerns and to re-enforce any continued support for U.S. equities, we may see some further weakening creeping into the SPX, with some profit-taking commencing in the NDX.
From the RUT:RVX Daily ratio chart below (note: the RVX is the Volatility Index of the Russell 2000), it would appear that the price level of 60.00 must be held to signal potential renewed buying in the Russell 2000 Index.
65.00 would be the next resistance level to be overthrown, followed by 70.00, 75.00, and, finally, 78.00. We'd also need to see a new swing high established on the Momentum indicator; otherwise, any buying may be quite short-lived. This is one chart to watch in relation to the above two charts to confirm the conviction and momentum of future price action in Small-Caps.
Welcome and thank you for visiting!
The charts, graphs and comments in my Trading Blog represent my technical analysis and observations of a variety of world markets...
* Major World Market Indices * Futures Markets * U.S. Sectors and ETFs * Commodities * U.S. Bonds * Forex
* The content in my articles is time-sensitive. Each one shows the date and time (New York ET) that I publish them. By the time you read them, market conditions may be quite different than that which is described in my posts, and upon which my analyses are based at that time.
* My posts are also re-published by several other websites and I have no control as to when their editors do so, or for the accuracy in their editing and reproduction of my content.
* In answer to this often-asked question, please be advised that I do not post articles from other writers on my site.
* From time to time, I will add updated market information and charts to some of my articles, so it's worth checking back here occasionally for the latest analyses.
DISCLAIMER: All the information contained within my posts are my opinions only and none of it may be construed as financial or trading advice...
UPCOMING (MAJOR) U.S. ECONOMIC VENTS...
* Fri. Apr. 19 ~ U.S. Markets Closed for Good Friday holiday
* Wed. Apr. 24 @ 3:30 am ET ~ German Flash Manufacturing PMI (watch for a hold below 50)...N.B. Jan. 24 PMI came in at 49.9, Feb. 21 PMI came in at 47.6 & Mar. 22 came in at 44.7 (contraction mode deepens!)
* Wed. May 1 @ 2:00 pm ET ~ FOMC Announcement + FOMC Forecasts and @ 2:30 pm ET ~ Fed Chair Press Conference
* Fri. May 3 @ 8:30 am ET ~ Employment Data
* Fri. May 10 @ 8:30 am ET ~ MoM & YoY CPI & Core CPI Data
* Wed. May 15 @ 8:30 am ET ~ Core Retail Sales & Retail Sales
* Wed. May 22 @ 2:00 pm ET ~ FOMC Meeting Minutes
* Wed. May 29 @ 2:00 pm ET ~ Beige Book Report
*** Click here for link to Economic Calendars for all upcoming events
NOTABLE POSTS WITH IMPORTANT UPDATES...