The Russell 2000 is particularly strong today, aided by bank stocks, industrials and technology.
Typically, the Russell tracks global growth sentiment but it’s headed in the opposite direction to copper and oil today as the world frets about China but cheers on a goldilocks recovery in the US.
The index opened slightly lower but has been steadily bid and has now risen above Thursday’s high to the best levels since April.
Russell 2000 daily
Aside from the 2000 psyhocological level, there isn’t much standing in the way of a return to the February highs. That’s impressive given that the index is bank-heavy and the KRE regional bank index is down 30% from Feb.
For overall sentiment, it’s a good sign that buying is broadening from the 7 stocks that have done the vast majority of the heavy lifting this year. In order to break the February high, the market will need signs of real and significant stimulus from China.