Amid Market Turmoil, Russell 2000 Divergence Could Be Good Sign

Many blogs have written about how horrible breadth has been for the last year or so (including this one). And, how F.A.N.G (Facebook Inc FB, Amazon.com, Inc. AMZN, Netflix, Inc. NFLX, Alphabet Inc GOOG) single handily kept the SP500 afloat last year, which is true.

However, on Wednesday the Russell 2000 traded down to the August 2014 panic lows but the amount of stocks trading above their 200-day moving average is well above the August levels as you can see in the chart below.

This could be viewed as a positive divergence.

This was originally shared on Frank Zorrilla, The Truth