Not Your Typical Russell Response
Monday was a typical bull market follow through day for the S&P after Friday’s rally. What was not typical was the muted response in the Russell and the 5% spike in VXST (9 day volatility). At this point no one in the mutual fund industry is going to risk giving up big gains for the year so we’ll likely see this jockeying occurring for the next three weeks.
For today the market is slightly overbought and we’ll wait for a pullback to begin signaling the better edges.