CLICK ON CHART TO ENLARGE
The top line represents the Russell 2000/SPY ratio. A 6-year support broke at (1), soon after that the S&P 500 broke below a multi-year support line at (2), which was followed by softness.
Now the Russell 2000/SPY ratio is breaking a 13-year support line of late.
Should investors “approach the markets with caution?” Will it be any different this time?