In the Beginning, this is where trends can change!

August 5, 2014 2:00 PM

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In the Beginning, this is where trends can change!

The charts below reflect the powerful rallies in the Russell 2000 & Mid Cap 400 index’s over the past 5 years.

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Many define a trend by using either support lines or long-term moving averages. Speaking of moving averages, the Russell 2000 is a small percentage below its 200MA and Mid Caps are a small percentage above it.

The support lines drawn above are tied to weekly closing prices over the past 5-years, tied to the 2009 weekly closing lows.

Anyone believe in the quote….”Bottoms are events and Tops are a process!” For some odd reason, this philosophy seems to work more often than not. 

The up trend in Small & Mid Caps looks to be up for now and being put to an important test.

New trends have a beginning, they have to start from somewhere. Time will tell if this is the beginning of a new trend for these two.

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