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Russell 2000 broke to all-time highs a few weeks ago. Now this key index’s relative momentum is reaching levels that has caused this index to at least take a pause over the past 7 years.
At the same time relative momentum is overbought, the Russell 2000 is up against a line that has been in place for the past 7-years, marking several key emotional turning points.
At least, small caps are due a breather because of these conditions! Could a breather in the relative strength winner impact the S&P 500? Could!