My 9/14/20 post noted the Russell 2000 (RUT) was showing bullish strength relative to the SPX. On 9/18/20 while the SPX was making a new low for the decline that began in early September, RUT was significantly above its September lows. Very unusual, since the March 23rd crash bottom RUT has significantly underperformed the three main US stock indices.
Now there's confirming evidence from the DJI. On September 18th it also held above its September bottom. DJI since March 23rd has been the weakest of the three main US stock indices - failing so far to make a new all-time high.
If this were the beginning of a new bear market the RUT and DJI would probably be leading the way down. That there're not is a significant sign of bullish strength.
Late August to mid- October is a seasonal bearish time for US stocks - there could be sideways action over the next few weeks, if so it could be a great time to accumulate long positions.
Mark
Now there's confirming evidence from the DJI. On September 18th it also held above its September bottom. DJI since March 23rd has been the weakest of the three main US stock indices - failing so far to make a new all-time high.
If this were the beginning of a new bear market the RUT and DJI would probably be leading the way down. That there're not is a significant sign of bullish strength.
Late August to mid- October is a seasonal bearish time for US stocks - there could be sideways action over the next few weeks, if so it could be a great time to accumulate long positions.
Mark