Russell 2000 Small Cap Stocks... Leading the Market Decline
The Russell Small Cap 2000 Index
has been leading the decline that hit the rest of the market this week.
RUT which hit an all time high in late August,
diverged from the rest of the market
,....and fell throughout the entire month of Sept.
It's decline accelerated during the first week of October,
as the decline reached the large cap stocks,and technology stocks, including Fang stocks
Small cap stocks traditionally lead the stock market,
in both advancing and declining moves, and it LEADS In TIME,
meaning the index is out front, and the first to move.
It was the Russell 2000 that began the almost parabolic stock rally,
after the Presidential election in Nov.2016, and reached all time highs
ahead of the rest of the stock market, in 2018.
Now, 2 years later,
it is the Russell 2000 Index that are once again is out front,
this time leading to the downside, and is currently testing its 200 Day Moving Average.
THE_UNWIND
has been leading the decline that hit the rest of the market this week.
RUT which hit an all time high in late August,
diverged from the rest of the market
,....and fell throughout the entire month of Sept.
It's decline accelerated during the first week of October,
as the decline reached the large cap stocks,and technology stocks, including Fang stocks
Small cap stocks traditionally lead the stock market,
in both advancing and declining moves, and it LEADS In TIME,
meaning the index is out front, and the first to move.
It was the Russell 2000 that began the almost parabolic stock rally,
after the Presidential election in Nov.2016, and reached all time highs
ahead of the rest of the stock market, in 2018.
Now, 2 years later,
it is the Russell 2000 Index that are once again is out front,
this time leading to the downside, and is currently testing its 200 Day Moving Average.
THE_UNWIND
who correctly anticipated, the price peak in the Russell 2000
back in August 2018, way ahead of the crowd,
He suggested that the,peak in the Russell 2000, would ultimately lead
to a price high and turn in the S+P 500, which occurred just 30 days later.
THE_UNWIND
.