Board-Ansicht
Mix-Ansicht- COMMENT: Russell 2000's Breakout Might Signal the Real Thing: - Der letzte Grund, 02.05.2001, 11:58
COMMENT: Russell 2000's Breakout Might Signal the Real Thing:
By Don Luskin
Originally posted at 12:24 PM ET 4/30/01
Just a quick break-in to point out a key technical development, the first technical clue that this spring surge in the equity markets might be something more than a bear-market rally.
Monday morning at 11:28 a.m. EDT, the Russell 2000 index became the first major index to break out above the declining trend line from the top of tops in March 2000. Today that trend line is at 488, and the index is now a point above that level. The line is shown on the chart below in red. So far, the breakout is so slight in relation to the humongous moves made by this index over the past few years that it shows up on the chart only as a single lonely black pixel, peeking out above the red line.
Russell 2000 Index
As of Monday, April 30, 2001; 11:32 a.m. EDT
For the Russell 2000, an index of 2,000 small-cap stocks, the top of the 1999-2000 bull market was March 10, 2000 -- the same day as the top for the Nasdaq Composite. The secondary top, which forms the second anchor-point for the trend line, is Jan. 31, 2001.
For the Nasdaq Composite, the analogous trend line is still miles away at 3096. But for the Dow Jones Industrial Average, it is within striking distance at 11,062.
It's too soon to know whether the Russell 2000 will be able to sustain this breakout. A couple of points above the line are hardly definitive. And more important, even if the breakout is sustained, it's not clear yet how the other indices will react when it's their turn to confront their own versions of the same trend line.
But in the meantime, it's surely a sign of spring that at least one major index is signaling that just maybe this thing's for real.
<center>
<HR>
</center>
Thread gesperrtgesamter Thread:
