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!
Which stock should you buy in your very next trade?
With valuations skyrocketing in 2024, many investors are uneasy putting more money into stocks. Unsure where to invest next? Get access to our proven portfolios and discover high-potential opportunities.
In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record.
With portfolios tailored for Dow stocks, S&P stocks, Tech stocks, and Mid Cap stocks, you can explore various wealth-building strategies.