This is an abridged version of our Daily Report.
Small hasn’t been so beautiful
While leading year-to-date, small-caps have been lagging the S&P over the past few months. The ratio of the Russell 2000 to S&P 500 is very close to falling to a multi-month low, a worse sign for small-caps than large-caps.
A high reading in Consumer Confidence is believed to lead to a higher dollar. The two move together more than Confidence leading, and Confidence has led the dollar only in exceptional cases, ultimately leading to burst bubbles.
End of a trend
The Nasdaq Biotechnology Index closed more than 1% below its 50-day average for the first time in more than 4 months. Dating back to 1993, the end of such long streaks led to some follow-through selling pressure over the next week.
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The post titled Small Starts To Struggle As Confidence Leads To Dollar Peaks was originally published as on SentimenTrader.com on 2018-09-18.
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