What Would Signify A Small-Cap Recovery?

Let’s take a closer look at the Russell 2000 to identify technical levels that will help signal an improving technical backdrop for small-cap stocks and risk assets in general. The chart below is weekly data for the Russell 2000 with three technical indicators, numbered on the chart that  we are monitoring.

1) Momentum - The top panel illustrates a weekly momentum indicator, which I’ve used for decades to help track 1-2 quarter shifts. That data was overbought and peaking in lat...

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