It was a nice rally in the stock market yesterday, but the Russell 2000 lagged badly once again. The regional banks continue to be a drag on this small cap index. If the Russell falls much further, it’s going to be very negative on a technical basis for this small-cap index.
Ely Lilly (LLY) has had an unbelievable run. It’s becoming quite expensive, and this year’s parabolic rally has taken it to an extremely overbought level on both its daily and weekly charts. Then again, it has been very overbought for a while, so maybe it will keep on rallying. However, it has now reached a level where investor & traders should be careful about chasing it.
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