A Bargain you can’t Ignore — This Laggard Breaks All Time High & Outperforms Nasdaq Last Week

Last week, Russell 2000 gained 6% (top right as highlighted in yellow) and was the best performer among the 4 major US indices, followed by Nasdaq 100 (bottom right), S&P 500 (top left) and Dow Jones (bottom left), as shown in the weekly chart below:

Both Russell 2000 and Dow Jones just broke out from the re-accumulation structure while S&P 500 and Nasdaq travels within a well define up channel and currently hit the channel’s overbought line. Would we see a rotation from the S&P 500 and Nasdaq to the Russell and the Dow Jones?

I have emphasized Russell 2000 many times in the following posts since earlier Sep 2021:

• The two proxies to confirm the super bull run
• Market is going down — beginning of selloff or rotation?
• The Next Biggest Index/ETF Winner
• One chart reveals how rising interest rate affects your investment
• Will The Rising Interest Rate Crash the Stock Market

Let’s focus on the daily chart of the Russell 2000 index futures (RTY) as shown below: