Is The Russell Breakout Likely To Spark A Rally In The SPX?

By Rob Hanna

The new high in the Russell is notable, since it is the 1st major index to get there. But it does not necessarily mean the other indices will follow. In the study below I looked at SPX performance following instances of a fresh RUT breakout while SPX had still not broken out.

2018-05-17

Whether you are looking at % Profitable, Win/Loss Ratio, Profit Factor, or Avg Trade, the numbers here appear quite neutral, and do not suggest a strong edge. Looking out further did not change them much, either. The Russell 2000 may lead the way following Wednesday’s new high, and the SPX could soon follow, but history does not indicate a high likelihood of that.

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Gary

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