Courtesy of Doug Short.
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The 2-pack below shows that the Russell 2000 and Mid Cap 400 ratios against the S&P 500 could be breaking support dating back a decade. The “Power of the Pattern” highlighted this past weekend illustrated that a rare situation that was taking place in the Russell/SPY ratio (see post here).
The last time the Small Cap/500 ratio broke down after breaking a four-year support occurred in 2007.
Joe Friday: “Investors should respect the message coming from these ratios, especially if both should break support and push lower at the same time.”
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