Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
I mentioned yesterday to “watch 810” on the Russell 2000 as this index had broken its 20 day moving average and was near the very bottom of a range it had been creating over the past month. Well true to form, we have seen a firm bounce off that level and the R2K is now approaching the 20 day that it broke. Which by the way was the first break of that level, on a closing basis, since Dec 20th (the first day of this rally). So what was a warning flag yesterday might be reversed today if this rally continues.
The bears continue to get any caution flags snatched away from them.
And since I have been complaining about breadth the past few weeks, let’s acknowledge that today is one of the better days on this measure that we’ve seen over the past few weeks.
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