small caps have been leading down ......whats your take on this ?
lets talk about the RUT 2000
Posted 03 August 2017 - 05:05 PM
Looking at both the MID and RUT, these patterns have occurred a few times this year where the MID and RUT are moving down a bit faster than the spx, but this one is a bit more like May 2017 where the spx gave up very little while the MID RUT may have already been down 2% from a recent high. Best pattern guess is that we are working our way towards a one day wonder spx down day. Maybe tomorrow on NFP, or over the weekend on news for next week. The other thing to look for if we got a nice down day on the spx is something near bottom tick on the cash close. Those bars have become really great buys when this RUT MID pattern is obvious like it is now. Otherwise follow the "never short the spx" rule and just try RUT MID NDX instead from time to time. The internals are at or near the intermediate buy zones without any spx price damage, so the one day of decent down would be all we need, and it may only be 1%. Flat Spx tops seem more like spring boards now than ever before.