Russell 2000 meeting resistance

The Russell 2000 Index is an important stock market index for several reasons:

1. It is a broad and representative measure of the performance of small-cap U.S. stocks. The index includes 2,000 of the smallest publicly traded companies in the United States, representing about 10% of the total U.S. stock market capitalization. This makes it a comprehensive benchmark for tracking the performance of small-cap stocks.

2. It is a widely used benchmark for small-cap mutual funds and exchange-traded funds (ETFs). Many small-cap mutual funds and ETFs are benchmarked to the Russell 2000 Index, which means that their performance is measured against the index's performance. This makes it an important index for investors who are interested in tracking the performance of small-cap stocks.

3. It is a leading indicator of the overall health of the U.S. economy. Small-cap companies are often considered to be more sensitive to changes in the economy than large-cap companies. This means that the Russell 2000 Index can be a good indicator of the overall health of the economy.

4. It has a long history of providing strong returns. The Russell 2000 Index has outperformed the S&P 500 Index, which is a benchmark for large-cap stocks, over the long term. This suggests that small-cap stocks can be a good source of long-term returns for investors.

Overall, the Russell 2000 Index is an important benchmark for investors who are interested in tracking the performance of small-cap stocks. It is a broad and representative index, and it is widely used by mutual funds and ETFs. Additionally, it is a leading indicator of the overall health of the U.S. economy and has a long history of providing strong returns.

And this has been the one Index I pay most attention to. To me, it is the best leading indicator in reflecting the general health of the stock market. Russell 2000 has been lagging behind the Dow Jones, Nasdaq and S&P500 and this provides us with the possibility of realizing higher ROI as Russell 2000 plays catch-up.
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