TA Spotlight - Russell 2000

The inverse relationship between the dollar and stocks (up dollar and down stocks) continued in 2010 despite end-year concerns.

Russell 2000 2x ETF (UWM):


The breakout of the swing highs on increasing volume (force) is bullish. Relative strength between small and large cap stocks, a measure of market participation*, has also turned higher recently.

IWM to S&P 500 Ratio:


*Source: When the small stocks "troops" are showing poor relative strength, or are lagging too far the large "generals", that's often a warning that market breadth is weakening. John Murphy, Technical Analysis of the Financial Markets, p 451.