Pre-Summary
The S&P 500 turned higher first while the Russell 2000 and NYSE Composite continued lower. Now the laggards are beginning to turn.
Are the Laggards About to Catch Up?
The S&P 500 formed its DCL in September and has since resumed its advance.
Stocks formed another swing low on Friday and closed higher on Monday, bringing the S&P back to the 7800 resistance level.
Meanwhile, the Russell 2000 continued lower, eventually testing support at the 200-day MA. The Russell formed a swing low on Friday and closed higher on Monday.
The NYSE Composite is showing similar behavior, forming its DCL and turning higher on Monday.
The leaders turned first while the laggards continued lower.
Now the laggards may be beginning to catch up.
If the laggards catch up, what happens to the leaders?
Cycle Alignment
S&P 500: Daily cycle advancing following its DCL.
Russell 2000: Swing low following its decline into the 200-day MA.
NYSE Composite: DCL formed; turning higher.
Cycle Alignment: The lagging indexes are beginning to turn as the leaders continue their advances.
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