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S&P 500/Russell 2000 Spread

The spread between large cap and small cap stocks is a pretty simple metric, but it is hard to ignore historical correlation to corrections:

Russell SPX Spread

More interesting than the magnitude of the spread is that the Russell 2000 recently broke through its 200 day moving average while the S&P 500 was making new highs:

200 Day moving Average 2014

This same anomaly happened in July of 2007:

200 Day moving Average 2007

Draw your own conclusions.

Posted in Markets, Technical Analysis.

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