Russell 2000 Intraday Record High Review

The Russell 2000 has pushed to new record highs by a large margine which leaves little doubt that the bullish phase as extended with the Russell 2000.  The DJIA and the SP500 have a long way to go to catch the Russell 2000. I think it is the Dow and the SP500 that are lagging behind and may never catch-up. I don’t believe in this catch-up market theory as the DOW and the SP500 are more like leading contrarian indicators. Still, investors are not confinced that a big bear market is coming.

I’m sure the Russell 2000 companies all require commodities of some type which could cause unintended consequences.  The only way that investors may wake up to the big bear is if we see an unxpected decline breaking past 3 or 4 price support levels.  Once the Russell 2000 breaks below the February 2018 low, then investors and analysts may start to join the bearish retoric.

During the 2008 market crash every major asset class joined the stock decline, with gold, silver and oil joining the bear party as well.  How long this can keep going is always uncertain, but all trends must end sooner or later.

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