Does the Russell lag concern you?


The Russell 2000 divergence with the S&P began on Mar. 10, when the S&P printed a new high that has since been unconfirmed by a new high in the R2K. If this divergence extends for a few more months, it might be concerning at that point. Yet some breadth divergences have in the past lasted for one year-plus before the S&P topped. So they cannot be relied upon for intermediate-term timing.

My wish for you is that you shut off all the opinions and predictions in the media and focus only on the averages and leaders. It will simplify things and improve your effectiveness because you will be operating solely on the laws of supply and demand, which are fact and the truth.

It is all in the chart.