Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
You might remember that orange box I posted a few days ago signifying the range the Russell 2000 has been for weeks, churning between 810 and 830. Well it has just broke the bottom of that range so it will be interesting to see what happens here. Of course the S&P 500 and NASDAQ continue to sit above all key moving averages as the larger cap indexes are led by a select bunch but this divergence has now been going on for about a month…
At this point the Russell 2000 has given up all of February’s gains (which were concentrated in the first 3 trading sessions of the month). As always the close is more important than the intraday action so let’s see how it sits at 4 PM. But the larger point is breadth has weakened the past few weeks as fewer names lead this market (to that end, the NASDAQ which has 3000 stocks in it, has 10 stocks that make up over 30% of the index weighting)
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