The Small-Cap Russell 2000 is Seeing Renewed Cracks in its Chart.
- Unlike earlier in the week, the stock market did react to the rise in bond yields yesterday. However, the decline in the stock market from its summer highs pales in comparison to what has taken place in the Treasury market since April. Therefore, it’s going to take much more than a “stabilization”…or even a mild decline in yields…to help push stocks higher in a sustainable fashion.
- The Russell 2000 index has broken back below its one-year trend-line…and it has also seen a “death cross” this week. It needs to hold the 1,700 level…or it will be vulnerable to a very quick drop down to is 2022 lows (which is its “line in the sand” support level).