Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
I feel like I am typing this daily but once again we have a wide divergence between the senior indexes of larger caps and the Russell 2000. This is going to resolve eventually by the large cap indexes finally relenting and coming in to match the weakness in the Russell, or the small cap group rebounding.
You can see the range I’ve outlined above – it would seem likely that whichever way this box is exited, the broader market will follow. If it is to the downside I cannot see a small group of large caps continuing to elevate while hordes of stocks in the meat of the market break down. Watch Russell 810 area.
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