The current Russell 2000 (RUT) rally from the 10/30/20 bottom is the largest and longest spike since the start of the secular bull market in March 2009.
That earlier spike was the kickoff of the secular bull market. The current spike is probably a speculative blow off top. Sharp moves up in small cap stocks is typically
a phenomenon of late stage bull markets. Speculators after months of upside action are now comfortable taking additional risk.
RUT rally could continue for several weeks. Most of the time price will peak on one or more RSI bearish divergences. Since the start of the RUT bull market, rallies have ended six out of the last eight times with bearish weekly RSI divergences.
Bullish seasonal factors and Fibonacci price/time relationships provide additional bullish evidence for US stocks and are examined in my website. Bears beware, its been
very difficult shorting since April 2020, this situation could continue for at least several weeks.
Mark
That earlier spike was the kickoff of the secular bull market. The current spike is probably a speculative blow off top. Sharp moves up in small cap stocks is typically
a phenomenon of late stage bull markets. Speculators after months of upside action are now comfortable taking additional risk.
RUT rally could continue for several weeks. Most of the time price will peak on one or more RSI bearish divergences. Since the start of the RUT bull market, rallies have ended six out of the last eight times with bearish weekly RSI divergences.
Bullish seasonal factors and Fibonacci price/time relationships provide additional bullish evidence for US stocks and are examined in my website. Bears beware, its been
very difficult shorting since April 2020, this situation could continue for at least several weeks.
Mark