Russell Showing His Love Muscle

Over the past 2 months the Russell2000 index has been taking on a leadership role when compared to the Dow, NASDAQ and S&P500.  Above is a 2 hour chart of the Russell2000 index and in the lower panes we have a ratio chart of the Russell2000/S&P500 and at the very bottom pane is the stochastics oscillator.  You'll notice today the Russell appears to have bounced off of a significant uptrend line. The ratio line has also been trending higher indicating that small caps are outperforming the S&P500. The stochastic oscillator is also turning upward from an oversold condition suggesting a rally back up to recent highs. 


http://kevinsmarketblog.blogspot.com/2012/07/russell2000-displays-relative-strength.html 

Very interesting.  This scenario is consistent with the beginning of a new bull market.