Russell 2000

Credit Suisse Is Now A Seller As S&P Hits "Bull Target" Levels, But With A Big Caveat

S&P 500 (June) now up at our 2070/80 bull target - the measured objective from the base and price resistance.  With potential trend resistance not far above at 2090, we continue to look for sellers here. Russell 2000 stays trapped in its near-term range...  Concern, as always, is that market positioning remains short, and if we start taking out resistance levels, we could see a big short stop out...

S&P 500 Slammed Back Into Red For 2016

Joining its Small Cap (Russell 2000) and Tech (Nasdaq) peers, the S&P 500 just plunged back into the red for the year after desperately clinging to it for 3 weeks.

Small Caps At Crucial Resistance - Beware Shenanigans

Amid a recent exuberant short-squeeze-driven bounce, the 'real' valuation of the Russell 2000 remains at insanely high levels (and gravely decoupled from credit markets). But as Dana Lyons' explains the market likes to do whatever will fool the most people. So while this level should at least be an interesting one in producing a battle between the Russell 2000 bulls and the bears, it would also be an ideal spot for the market to unleash its shenanigans.

The Three Charts That No Small Cap Asset Manager Wants You To See

A funny thing happens to an index's valuation when you choose not to entirely ignore the companies that have negative earnings (i.e. losses). Ever wondered what the P/E ratio of the Russell 2000 was given that it is full of companies where the 'E' is negative? The answer is simple - and ugly - as The Wall Street Journal exposes, the aggregate P/E of the Russell 2000 is over 200x which perhaps explains the gaping chasm between bond and equity valuations for this highly credit-sensitive cohort.

Bull Rallies In Bear Markets - The Perfect Storm

"Investor hopes of coordinated G20 policy actions proved to be pure fantasy... It’s every country for themselves." Use any rally this week to move to the lowest level of equity exposure for this part of the cycle.

"Everything Is Rolling Over" - BofA Watches The Carnage

"Should the S&P 500 “The Generals” follow the weakness in the Value Line, NYSE, Russell 2000, and S&P Midcap 400 “The Troops”, there is risk below 1812-1810 toward 1730 (38.2% of 2011-2015 rally) and then 1600- 1575."

Breadth Breakdown Bodes Badly For Budding Bulls

While the S&P 500 held support at January low (1,812) yesterday (and October 2014's Bullard bounce lows), BMO's Russ Visch warns "it may not hold in the days ahead" due to weak market breadth.

What The Charts Say: "Complacent" Bulls Remain As S&P Support Under Pressure

"Sell into strength" remains BofAML's tactical advice in US equities, especially as several indicators have dropped back toward the more complacent levels that coincided with previous S&P 500 highs. As Suttmeier concludes, "we still are not ruling out a cyclical correction within the larger secular bull market with risk toward 1600-1575."

Either Banks Are Cheap... Or The Market's Gonna Crash

Simply put, either large cap Financials are cheap, or the entire U.S. equity market is still overpriced. Their precipitous decline year to date means markets fear they are both the transmission mechanism for a global slowdown/recession to come and a primary victim of that event.