Small Starts To Struggle As Confidence Leads To Dollar Peaks

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.

Confidence game

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.

For access to the full report, indicators, charts, screens, and Backtest Engine, log in or sign up for a free 30-day trial today.

The post titled Small Starts To Struggle As Confidence Leads To Dollar Peaks was originally published as on on 2018-09-18.

At, our service is not focused on market timing per se, but rather risk management. That may be a distinction without a difference, but it's how we approach the markets. We study signs that suggest it is time to raise or lower market exposure as a function of risk relative to probable reward. It is all about risk-adjusted expectations given existing evidence. Learn more about our service , research, models and indicators.

Follow us on Twitter for up to the minute analysis of market action.

Not ready to signup up for a free trial yet?

Signup for our Daily Lite email to receive highlights of our daily report, research and studies.

Follow us on Twitter:

Subscribe to our Youtube Channel:

RSS Feed

Subscribe to the Blog RSS feed