![China Nears 25-Yr Relative Support vs. SPX as R2K Ascends to 30-Yr Channel Resistance](https://i0.wp.com/www.onlypricesmatter.com/wp-content/uploads/2018/06/2018-06-20-Ratio-SSEC-vs.-SPX-Weekly.png?resize=150%2C150)
China Nears 25-Yr Relative Support vs. SPX as R2K Ascends to 30-Yr Channel Resistance
Below the ratio of the SSEC vs. SPX is nearing a 25-yr support line. That line sits at ~1.00 vs. the ratio’s current print of ~1.05. So, a few % lower. Knowing China, there will probably be some theatrics involved…...
![Chart Dump](https://i0.wp.com/www.onlypricesmatter.com/wp-content/uploads/2017/09/2017-09-27-R2K-Daily.png?resize=150%2C150)
Chart Dump
Let’s start with a top-down view by looking at the R2K. Yesterday’s tax plan-fueled rally in the major indices helped launch it significantly higher. In the process, the index managed to smash through multiple years of upside resistance. This resistance…...
![Russell 2000 Finalizes Bearish Topping Pattern with Significant Breakdown to Start 2016](https://i0.wp.com/www.onlypricesmatter.com/wp-content/uploads/2016/01/2016-01-04-R2K-Weekly.png?resize=150%2C150)
Russell 2000 Finalizes Bearish Topping Pattern with Significant Breakdown to Start 2016
Per the chart below, with today’s material break-down in global equities, the Russell 2000 appears to have completed a major, bearish, head & shoulders topping pattern that has formed over the past two years. Similar patterns formed around the index’s…...
![Repeating Pattern in the Russell 2000 Suggests End of Bull Cycle Upon Us](https://i0.wp.com/www.onlypricesmatter.com/wp-content/uploads/2015/12/2015-12-15-R2K-HS-Topping-Pattern-Weekly1.png?resize=150%2C150)
Repeating Pattern in the Russell 2000 Suggests End of Bull Cycle Upon Us
I believe the R2K has been in the process of completing a major topping pattern since early 2014, per the chart below, that is similar to the tops it put in place in 1997-1998 and 2006-2008. Each of those patterns takes…...
![Looking in All the Wrong Places: Why Global Equities are Set to Collapse (Part 2)](https://i0.wp.com/www.onlypricesmatter.com/wp-content/uploads/2015/12/2015-12-07-SPX-1937-vs.-R2K-2015-Analog-Daily1.png?resize=150%2C150)
Looking in All the Wrong Places: Why Global Equities are Set to Collapse (Part 2)
Last Thurs in this post we explained that we felt that the DAX was foreshadowing a major global equity collapse along the lines of that witnessed in 1937 or 1974. In that post, we used this analog to justify the point…...
![Signs Point to Additional Near-Term Downside in Riskier Assets](https://i0.wp.com/www.onlypricesmatter.com/wp-content/uploads/2014/05/2014-05-15-R2K-DJI-1989-1991-VIX-Near-Term-Risk-Asset-Break-Down.png?resize=150%2C150)
Signs Point to Additional Near-Term Downside in Riskier Assets
In the chart below I plot the R2K over the past few years along with the Dow from 1989-1991 as well as a plot of the recent price action of the VIX. At (A) the R2K put in a fairly…...
![Risk Unwind](https://i0.wp.com/www.onlypricesmatter.com/wp-content/uploads/2014/04/2014-04-30-Ratio-R2K-vs.-SPX-w-20-Day-RoC-Daily.png?resize=150%2C150)
Risk Unwind
I had a post earlier today suggesting exposure to risk assets has been in the process of being unwound, but one need look deeper than large macro indices such as the DJI/SPX to see evidence thereof. I present the ratio…...
![Russell 2000 Faces Resistance on a Relative Basis & Could Under-Perform for Years](https://i0.wp.com/www.onlypricesmatter.com/wp-content/uploads/2012/12/2012-12-27-ratio-r2k-vs-spx-weekly.png?resize=150%2C150)
Russell 2000 Faces Resistance on a Relative Basis & Could Under-Perform for Years
Dating back to June of this year we have been suggesting that the potential for a longer-term reversal in the USD could lead to small-caps sustainably under-performing the broader market. We continue to believe this today. Even if the USD…
![Russell 2000 Forming a Classicly Bullish Technical Pattern That Should be Resolved with Higher Prices](https://i0.wp.com/www.onlypricesmatter.com/wp-content/uploads/2012/10/2012-10-17-russell-2000-cup-handle-daily.png?resize=150%2C150)
Russell 2000 Forming a Classicly Bullish Technical Pattern That Should be Resolved with Higher Prices
The Russell 2000 is forming a classicly bullish cup & handle pattern in the chart below. We typically hesitate to talk about technical patterns like these as we believe they are the purview of bloggers/market practitioners that use only technicals…
Is The Russell 2000 Now Working on a 1995 Style Break-Out?
Our earliest posts on the R2K were directionally bearish in nature. On 5/30 we suggested the index’s path of least resistance was likely down. A month later on 6/27 we then suggested downside risks remained elevated over the intermediate-term. Neither…...