Interesting divergence between the S&P500 and Russell 2000 in the month of July. The S&P is in a classic short-term uptrend, making higher highs and higher lows since bottoming in early June. The Russell, however, after making a short-term high in July broke its uptrend line and has been making lower highs.
What does it mean? Who knows for certain and could be just noise as the sell-off in the Russell is less than 4 percent. It does show, however, big cap is in vogue and the economically sensitive small caps not faring as well this summer. Keep it on your radar.
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