Replies to post #10668 on 123Tom's TA study group

[Sendme]

I try to be open to either way. And like you mentioned, I think that unless we get some type of extreme fear event that the market will slowly grind higher.

I think that we are overdue for a 10-12% pullback that would be a potential buy the dip still to come and then back up to test the highs and see from there.

The gaps on the SPY chart that I posted the other day are really stacking up and it would be good for the market to fill a handful of those with a 10-12% correction IMHO.

I have read and heard many times that the Russell 2000 is often a good tell on how the market is really doing compared to how the SPY is doing.

So here is a chart of the Russell 2000 again which does show a break out, and I labeled the amount of time it typically broke out and often times has failed.






Then I put the SPY chart on it for comparison to see how they reacted together.

The red arrows are approx. where the SPY was on the RUT break out.
The chart is measured by the % move up and from 2011-2019 they stayed fairly close in their moves and when they started to separate we started to have bigger moves down.