Small caps are often the early risk on/off indicators. They are the first to rally during an economic expansion period, they are the first to dive are economic condition becomes more restrictive.
190 is a very crucial level for the Russell 2000. It act as a key support level in Feb 2022 and became the resistance in May/June 2022.
As Fed Pivot euphoria is slowing down, recession worries are becoming a bigger concern. Whether this current rally is a one-time wonder or the beginning of a bull market will be dependent on if the 190 level can hold.
Good News: The downtrend line is broken
Bad News: We have yet to see a higher low. This could also be the end of the recovery B Wave on a bigger downtrend
Unlike 2020 convid19, 2022's carnage is a systematic downtrend that is led by Federal Reserve's Policy (and their mistakes). As such, this bear market can and will be more drawn out.
If 190 is broken, 170 is the next support level.
Look out for Jerome Powell's statement during Jackson Hole's symposium.
190 is a very crucial level for the Russell 2000. It act as a key support level in Feb 2022 and became the resistance in May/June 2022.
As Fed Pivot euphoria is slowing down, recession worries are becoming a bigger concern. Whether this current rally is a one-time wonder or the beginning of a bull market will be dependent on if the 190 level can hold.
Good News: The downtrend line is broken
Bad News: We have yet to see a higher low. This could also be the end of the recovery B Wave on a bigger downtrend
Unlike 2020 convid19, 2022's carnage is a systematic downtrend that is led by Federal Reserve's Policy (and their mistakes). As such, this bear market can and will be more drawn out.
If 190 is broken, 170 is the next support level.
Look out for Jerome Powell's statement during Jackson Hole's symposium.