Russell 2000 – Starts to Outperform
Russell 2000 – Starts to Outperform
Unlike India, US small caps have been underperforming large caps for a while. But that started to change in the last quarter. The first attempt to break out of the neckline failed, but that rally was wave 1, and wave 2 ended just before 61.8% retracement near 1821. Now, wave 3 is on. The Russell index should continue higher toward at least 2150, but if it extends as it can in a third wave, I will not rule out 2350 eventually in the months ahead. The neckline is at 1955 and we need to go back above it as the first sign that we are breaking out of the congestion zone that we have been stuck in.
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