CLICK ON CHART TO ENLARGE
The Russell 2000 in 2007 was spot on about the future of the broad market, as it was creating lower highs and diverging from the S&P 500 index.
Now turn the clock forward 5 years and the Russell is creating lower highs from a year ago, diverging from the S&P 500 again.
The Russell find itself testing a key support line, that if broken will most likely pull the broad market down with it. Ole Joe Friday shares that the Russell has been a quality leading indicator for key moves in the broad market, so keep an eye on how the Russell 2000 handles this support line!