The Diverging Market

Here’s a chart showing the point I was trying to make earlier. The black line (left scale) is the Russell 2000. Note how it peaked in March. In early July, it challenged that peak and failed to break it.

Since then it’s lagged the market. While the S&P 500, in red, has gradually pushed upward and is close to making a new all-time high.

Here’s the Russell 2000 divided by the S&P 500 since the start of last year. See how sharply the Russell has lagged since early this year.

Posted by Eddy Elfenbein on August 19th, 2014 at 10:27 am

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.