Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
I keep speaking about this divergence because it is quite amazing in (a) how long it has persisted and specifically to today (b) the ratio. Usually we’ve seen about a 0.5 to 0.7% spread between the S&P 500 and Russell 2000 as they have been moving thru February. Usually it’s about a 2.5:1 ratio or maybe a bit more i.e. S&P 500 down 0.3%, Russell 2000 down 0.65+%. As I type this the Russell 2000 is down 1.85% versus the S&P 500’s 0.5% – that is almost 4 to 1. A tale of two markets continues. The S&P 500 is holding at its 10 day moving average where the dip buyers have had a buying orgy all year.
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