Why a Santa Claus rally for small-cap stocks is looking shaky

  • 📰 CNBC
  • ⏱ Reading Time:
  • 23 sec. here
  • 9 min. at publisher
  • 📊 Quality Score:
  • News: 37%
  • Publisher: 72%

Investment Strategy News

Stock Markets,Russell 2000 Index,S&P 500 Index

We're entering the tailend of the year, a historically strong period for small caps. This year could be different, however.

We're entering the tailend of the year, a historically strong period for small caps. But this year could be different. Wolfe Research strategist Rob Ginsberg pointed out that one-third of Russell 2000 stocks are flashing a sell signal in terms of the moving average convergence/divergence technical indicator. "The past few instances of this have marked near term peaks," Ginsberg wrote. This comes as the small-cap benchmark has struggled lately.

"The question of the hour seems to be 'do we rally into year end?'. History would imply yes. Between 1994-2023, the last two weeks of the year saw the Russell 2000 up ~2% on average," he said in a note. "The Russell 2000 continues to peel back since briefly breaking out to a new high. With support at 2300 … we anticipate this pullback presenting a buying opportunity – but as we know, timing is always tough," he added.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in US
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Investing.com poll: Will a Santa Claus rally push stocks higher into year-end?Investing.com poll: Will a Santa Claus rally push stocks higher into year-end?
Source: Investingcom - 🏆 450. / 53 Read more »

Unlock Holiday Gains: Three Stocks Ready for the 'Santa Claus Rally'Discover three standout stocks poised for seasonal growth as the 'Santa Claus Rally' approaches. These stocks offer attractive dividend yields and strong upside potential, making them ideal for holiday investing.
Source: Investingcom - 🏆 450. / 53 Read more »