A ‘golden cross’ is forming in a key stock-market index of small-caps

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A bullish cross is set to form in the Russell 2000 index as soon as Monday

The Russell 2000 index RUT, +0.31%, the benchmark of small stocks, is set to see a bullish “golden cross” price pattern crystallize on the charts, as early as Monday, and that could presage a firmer breakout for the equity gauge, which has badly lagged behind the Dow Jones Industrial Average DJIA, +0.02%, the S&P 500 index SPX, +0.26% and the Nasdaq Composite Index COMP, +0.48%.

In this case, the Russell 2000’s 50-day moving average at 1,539.72 is poised to rise above its 200-day MA at 1,541.24, FactSet data show . The Russell 2000 has enjoyed a recent uptrend along with its larger peers but is 8.3% off its Sept. 3, 2018 all-time high at 1,740.75, whereas all three major benchmarks, the Dow, the S&P 500 and the Nasdaq have this week exceeded all-time records last established this summer.

 

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