Our bread and butter, XSO and RUT small cap indexes.
Both have been faltering since the end of the COVID bull run, hence our tough time over the last few years. RUT in particular has had two pretty clear distribution periods, the latter having just finished with a fake breakout on both the XSO and RUT I think. Counter trend bounce looks to be over on the US index, downside looks likely at this point.
RUT and XSO responded quickly to bond markets pricing in rate rises a couple of years ago, and they look to be responding to upcoming rate cuts, (which usually cause market turmoil.)
VIX is pointing towards some real volatility coming up, so that'll be interesting to watch unfold.
Ive been patiently waiting for markets to reset for the last couple of years, but headline stocks have been keeping it afloat (stocks like Apple and Nvidia in the US) but that bull market never really extended to small caps as can be seen in the XSO and RUT. Want to get this year or so of bear market out of the way so we can have some good trading conditions down this end of the market again.
Gold also looks primed for a real run (i would imagine it will sell off initially but continue above highs while stocks struggle). Silver is my big watcher, looks really good.
