RUT- The final golden cross for the major indexs
According to Finviz, more than 75% of stocks are above SMA50 and close to 60% of stocks are above SMA 200. Furthermore, SPX has stayed above 3200 for a month.
Historically, DJI is usually the first index to recover after the market crash because investors want to put their money in safe mega cap and blue chip stocks
during the bottom-out process and time of uncertainty.
However, Covid-19 is producing the favorable environment for e-commerce company and internet/IT services company that power e-commerce to thrive, leading to the NDX's wild surge and SPX & DJI's unusual lag.
Russel 2000, the small cap index, is usually the last one to join the rally because it is usually deemed as a risky investment by investors, especially during the time of uncertainty.
Therefore, when investors flock to RUT (Russel 2000), it could signal and reaffirm the bullish sentiment among investors, drawing the last of doubters and FOMOers into the market.
That time could be now.
Historically, DJI is usually the first index to recover after the market crash because investors want to put their money in safe mega cap and blue chip stocks
during the bottom-out process and time of uncertainty.
However, Covid-19 is producing the favorable environment for e-commerce company and internet/IT services company that power e-commerce to thrive, leading to the NDX's wild surge and SPX & DJI's unusual lag.
Russel 2000, the small cap index, is usually the last one to join the rally because it is usually deemed as a risky investment by investors, especially during the time of uncertainty.
Therefore, when investors flock to RUT (Russel 2000), it could signal and reaffirm the bullish sentiment among investors, drawing the last of doubters and FOMOers into the market.
That time could be now.
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