Russell 2000 Technical Analysis – Weak US data erases all the July’s gains ...Middle East

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Russell 2000 Technical Analysis – Weak US data erases all the July’s gains
Fundamental OverviewThe Russell 2000 has been on an incredible run ever since the last US CPI report. The goldilocks data was the catalyst for a strong rotation from big cap stocks into the small cap stocks, and the momentum was probably exacerbated by hedge funds facing short squeezes on their small cap hedges as yields came down. The market hasn’t even suffered the selloff in the major indices caused by the deleveraging of Yen carry trades and continued to trade around the highs. Unfortunately, that has changed last week as we got two important US data points surprising to the downside.The first wave of selling was triggered by the ugly US ISM Manufacturing PMI and then the selloff exacerb

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