Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
Being the weak sister of the market the past 6 weeks I am watching the Russell 2000 a bit more than the S&P 500 right now. It broke the 50 day moving average during Tuesday’s slash and burn but has staged a dramatic bounce since. Most of February it sat in the 810-830 range while the larger cap indexes advanced, and today’s move has it regaining the lower end of that range. We’ll see if it can keep that level on a closing basis but once again you have to applaud the move from oversold levels. Regaining that 20 day moving average would be the next key level, at which point all the major averages would once again be confirming each other rather than having this curious laggard as we’ve had the past month+.
In a non QEn / LTRO environment, I’d make a comment here about this being the place an ETF/equity/market with a chart like the Russell 2000 would begin to roll over again (after staging a bounce off the first oversold level) but those sort of comments have no place in 2012.
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