The Russell finally meets it’s 200 day moving average…

rut

This morning’s early momentum off of Citigroup’s better than anticipated earnings release slowly faded by the afternoon. The S+P 500 went from being up close to one percent this morning, to turning slightly negative by mid afternoon. As I type this the S+P 500 is back up about 0.50% or 10 points. What can I say, volatility is back.

During the afternoon drop both the Nasdaq and the Russell 2000 briefly made new lows, taking out Friday’s low. What’s interesting in this case is that in the process, the Russell 2000 actually hit it’s 200 day moving average. As depicted in the chart above, it’s been since late 2012 since the Russell and it’s 200 day moving average was tested. I don’t think it’s a coincidence that the broad market reversed back higher shortly there after.

For those that don’t know, the Russell 2000 index is comprised of small cap domestic companies. They generally are more risky than large cap companies and will usually underperform on broad market declines but on the flip side outperform on rises.

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