Russell 2000, Value Line Geometric Index Test Key Breakout Levels at the Same Time
Chris Kimble | Jan 09, 2024 01:54
For the past two years, the Russell 2000 and Value Line Geometric Indexes have been lagging.
Recently, however, both have come alive adding a tailwind to the end-of-year rally.
But these short-term rallies may be in trouble. Which also could mean that the broad market rally is in trouble.
As you can see in today’s chart 2-pack, both of these lagging indexes peaked at the respective 50% Fibonacci retracement level over the past two years. And it could be happening again.
Note that each index created a weekly reversal pattern over the past 2 weeks and is attempting to break down through up-trend support. Worth watching here, in my opinion.
Stock bulls would receive quite a bullish message if both break above the 50% levels at the same time!
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