
50 BPS RATE CUT FEVER GRIPS THE STOCK MARKET – SMALL CAPS ROCKET, FOREIGN MONEY FLOWING INTO CHINA
By Nigam Arora & Dr. Natasha Arora
To gain an edge, this is what you need to know today.
Rate Cut Fever
Please click here for a chart of small cap ETF (IWM).
Note the following:
- The chart shows a strong move up, about 3%, in small cap stocks yesterday.
- The chart shows in the early trade small cap stocks are moving even higher.
- The chart shows in spite of the large move yesterday, small caps are still in zone 2 (resistance).
- The chart shows small caps are still below the prior high marked by the upper band of zone 1(resistance) even though S&P 500 and Nasdaq have moved to new highs.