2 Key Stock Indexes May Be Sending Bearish Signal To Market

For the past two years, the Russell 2000 and Value Line Geometric Indexes have been lagging.

Recently, however, both have come alive… adding a tailwind to the end of year rally.

BUT these short-term rallies may be in trouble. Which also could mean that the broad market rally is in trouble.

As you can see in today’s chart 2-pack, both of these lagging indices peaked at the respective 50% Fibonacci retracement level over the past two years. And it could be happening again.

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Note that each index created a weekly reversal pattern over the past 2 weeks and are attempting to break down through up-trend support. Worth watching here, in my opinion. Stay tuned!

Russell 2000 and Value Line Geometric Indexes Chart

russell 2000 index value line geometric 50 percent fibonacci retrace important time chart january

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Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.