VIDEO Russell 2000 keeping pace with NASDAQ 100

With equity indices screaming today, one may be asking why? Perhaps it was because the RSI for the ratio of the Nasdaq, which can be used as a proxy for growth stocks, vs the Russell 2000, which is used as a proxy for value stocks, had moved into oversold territory yesterday.

In a video last week, we discussed the rotation trade out of NASDAQ 100 and into the Russell 2000 indices. We called it the out of “stay at home stocks” and into the “go out” stocks.

Let’s look at the ratio of the Nasdaq vs the Russell.

Although prices may seem like they may be overbought today, there is nothing unusual about the ratio of the NASDAQ 100 vs the Russell 20000, as it is sitting right in the middle of the channel it has been in for the last 6 months!

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