The main thing jumping out of today’s chart is the 50-day ( ). RUT tested it in early March and has chopped on either side of it since. But now prices are trying to hold it as they squeeze into a tight range.
Second, notice the relationship with the 10-day , which is rising up toward the 50-day . Other times when it crossed above in May and October were followed by periods of strength.
Finally, notice how the histogram has inched back from toward neutral. Like the 10-day versus the 50-day , it hasn’t crossed yet. But it could be worth watching.
Overall, the data seems to be confirming the economic recovery and restrictions are loosening in various jurisdictions. Small caps have been one of investors’ favorite ways to position for that reopening trend, so buyers may return as the summer approaches.
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