Interesting divergence between the S&P500 and Russell 2000 in the month of July.   The S&P is in a classic short-term uptrend, making higher highs and higher lows since bottoming in early June.  The Russell, however, after making a short-term high in July broke its uptrend line and has been making lower highs.

What does it mean?  Who knows for certain and could be just noise as the sell-off in the Russell is less than 4 percent.  It does show, however, big cap is in vogue and the economically sensitive small caps not faring as well this summer.   Keep it on your radar.



(click here if charts are not observable)

Category: Think Tank

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

One Response to “Tale of Two Charts: S&P500 and Russell 2000”

  1. [...] The July rally has been all about large caps, small caps have been making lower highs.  (TBP) [...]