Market Weakness Working From the Outside Inwards

 

THE STOCK MARKET: Weakness Working From The Outside Inwards

The Russell 2000 and the Nasdaq represent the majority of  American Stocks.

stockcollection

Click Charts to Enlarge

However, the stock slide from around the globe has spread to the US as well.

Starting with the largest indexes, we get a more balanced view of the state of the markets (or at least the majority of listed companies that comprise it) and that view is that of a weakening market overall. As you can see with the larger indexes in the above charts, starting with the Russell 2000 as the most weakened and moving to the S&P 500 we see another blue chip group that is testing the lows of the previous year.

russell2000The Russell 2000 has already taken out it’s previous year’s lows.

All the other US Indexes are approaching the same lows from last year.

This is a powerful support area, which, once broken, will want to take the markets much lower.

It will take a lot of investment to overcome and rally from this price area.

There’s less investment liquidity to ‘buy the dips’ this time around compared to the last and the economic world is a much different place today than then. – George.

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