I present the updated, zoomed-out 30-minute small cap chart which we have been observing throughout July to drive home the point that the Russell has yet to give the green light for another leg higher.
True, recent lows have held for a potential double-bottom (lower light blue line). But we could easily be working through a descending triangle (upper blue line too), which is often a bearish continuation pattern before breaking lower.
Either way, small caps continue to be an issue for the market and its inability to stage broad-based rallies as we head into the dog days of summer in August.
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