Small-caps Lead Decline
The Major US Markets Perfchart shows the Russell 2000 ($RUT) leading the way lower over the last two weeks. Notice that the Russell 2000 has not even been positive (above 0%) over the last 10 days. In contrast, the other major indices were in positive territory at some point over the last 10 days.
Click this image for more details.
Yes, and at the end of September we noted that both the $NYSI and $NASI peaked at higher highs but with negative divergences in both the standard RSI and MACD. This implies that the smaller capitalization issues are starting to fade, corroborating your observation above. This bodes ill for the market as a whole, since concentration of money in the larger capitalization issues is the harbinger of the end of the bull run.
Posted by: Lloyd Walker | October 29, 2009 at 01:56 PM