The Russell 2000 is poised for its lowest weekly close since November 2020. It has fallen in four straight weeks and seven of the last eight.
It is trading at 4:46 p.m., which is only 0.3% above the intraday low of 1641 in June 2022. The index is down 0.6% today. If this level exceeds, we could find ourselves facing a world of technical problems. The Russell 2000 range has been developed over 18 months and both sides have been tested several times.
Getting back to basics, a break in the index would indicate a recession and a stubbornly high rate by the Fed. This is certainly a plausible scenario for 2024.