The stock market is in rally mode as the US and China appear to be nearing a smaller pact on their trade deal talks (called “phase one”).
The broader stock market would like to see the Russell 2000 Index take a leadership role after lagging for months. Stocks tend to perform better when higher beta (risk) stocks such as small caps are outperforming.
This is one theme to watch. If small caps continue to lag, it could keep a lid on the market.
In today’s video, we discuss our weekly outlook, key themes and news for investors to watch, and the current technical structure of the broader stock market. Here’s a recap:
– The Russell 2000 Index (small Cap stocks) is holding support as bearish momentum appears to be fading.
– The 10-tear treasury yield is rallying from support near 1.5%.
– Gold continues to consolidate gains.
Stock Market Today Video – October 14, 2019
Twitter: @DanRusso_CMT
Author 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.
