It’s been a slow grind higher for the stock market, which is bullish. But when focusing on what is changing on the margins, discrepancies become clearer.
The Russell 2000 Index (RUT) has been sticking out as a stock index that looks to have lost some of its momentum lately. It’s been lagging other major stock market indices and could turn lower soon.
As mentioned, upside momentum is fading and I see the potential for short-term weakness.
If the weakness does materialize as expected, the Russell 2000 Index could test channel support and the MOB band in the 2020 – 2080 price area.
Stay tuned here… this could be a short-term canary.
The author or his firm may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
