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!


How The Recent Decline In Stocks Looks "Eerily" Like Major Bear Markets Of The Past