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Russell 2000: Once Again In Take-Profit Territory

Published 12/07/2016, 12:08 AM

Once again yesterday, the Russell 2000 pushed into the 10% zone of historic high prices (1,388 would be enough for the 5% zone last seen in February 2011). Back in 2011 the index rallied for another couple of months before it lost 30% from its high. The next few weeks would be a good opportunity to take some money off the table to use on the next swing low.

RUT Monthly 2007-2016

On the Daily chart the 'sell' trigger in MACD reversed with a new 'buy' trigger.

RUT Daily

Other indices gained, but none are as overvalued as the Russell 2000. The S&P is close to breaking to new highs.

SPX Daily

Although Tech indices still struggled to regain lost ground.

COMPQ Daily

Santa looks like he will stay through Christmas, but the New Year could be a tricky time.

Latest comments

Your analysis are ruthlessly pragmatic and crystal clear. No ifs and buts. And I saw your profile: nematology. wow! That's something. Please keep guiding us. One thing though I would like you to shed light on: the price action we see nowadays: 1. Isn't it irrational exuberance 2. How does it compare to 2000 and 2007/08 and 3. In the wake of QEs to date and now promised fiscal stimulus, how large a bubble we will end up creating
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