We often note in NFTRH that it is logical for the Small Caps to out perform the Large Caps during a time of US dollar strength. The reason is that a much higher percentage of the SC’s business is done domestically, compared to the large multi-nationals populating the S&P 500 and the Dow.
We have also used this monthly chart to show that the US dollar bounce was coming from long-term support and therefore, should be respected for its potential to turn out to be more than a bounce.
So here is the daily RUT, breaking upward from an Ascending Triangle. Will it hold? Well, every breakout player on the planet sees it, as do the machines. The question is do they pump the momo or reverse it and shake ’em out? But this breakout, if successful would target around 1730.
Finally, for a little more perspective our handy in-house (at Biiwii) Quant, Rob Hanna puts the numbers to the Russell’s ability (or lack thereof) to lead the broad market after making a new high.
Is The Russell Breakout Likely To Spark A Rally In The SPX?
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