Like it or not, the small cap index, Russell 2000 is breaking out in a big way.
We’ve been moving sideways since late 2016 and just this week we saw a gap and go sharp move to all-time highs and are in the process of resolving this 20-week range to the upside.
For all the bear attacks incoming, yes this move can fail, yes we’re overbought and yes, we do have plenty of headline risk over the near term with earnings, fiscal policies, government budget shutdown issues, etc. that could de-rail this move.
This is why it’s important for the bull case that the gains above 140 hold into end the of the week, preferably near highs.
Weekly breakouts (closes), carry more weight and tend to get the attention of longer term market participants.
As we pointed out on Monday of this week, it continues to be the bulls game to lose:
— Evan Medeiros (@evanmedeiros) Apr. 24 at 10:31 AM
I’ll have more analysis out in our youtube market recap later today.
Thanks for reading and good luck out there.