Could it actually be the Russell 2000 that is most important to watch here? The RUT has found support at the 100-day SMA. This is important since the previous reference to this technical indicator led to a strong bounce to new 2019 highs in the RUT. You can see how strong of a reaction we are having today and how it failed to go below this indicator yesterday. I do believe it is essential that the major markets hold above the 200 day SMA(The SPX in particular), but I do not want others to forget the RUT. The small-cap market has been viewed as a potential leading indicator of things to come for the markets. While I do not believe it is a true leader, I have seen a strong correlation with larger market moves both up and down. Keep an eye on RUT if you haven’t already. It could give us a glimpse of what is to come.
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