Sure things look good and the bull is alive and well, but here is something that concerns me.
The Russell 2000 (RUT) is up against the psychological area of 1,000. It couldn’t close above it yesterday and looking like it’ll close beneath it again today. So what you ask? Let’s take a trip down memory lane.
The S&P 400 MidCap (MID) first touched 1,000 in April 2011. It didn’t fully clear this level until this past December. That is nearly 20 months for those scoring at home.
The Dow is even more amazing. It first hit 1,000 in January 1966 and didn’t fully clear this area until late 1982. In other words, it took more than 16 years! Here’s a chart from Barry Ritholtz showing this timeframe.
The good news is the S&P 500 hit 1,000 in 1998 and it didn’t mean anything. Still, with the RUT up near this level and given its history as a potential rally buster, pay very close attention.