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The above 2-pack highlights that the Russell 2000 and Mid Cap 400 ratios against the S&P 500 could be breaking support dating back a decade. The Power of the Pattern highlighted this past weekend the rare situation that was taking place in the Russell/SPY ratio (see post here) The last time the Small Cap/500 ratio broke down after a 4-year support break took place was 2007.
Joe Friday…. Investors should respect the message coming from these ratios should both of them break support and push lower at the same time!