BHT identifies meaningful trends and important supply and demand levels in the financial markets. An understanding of these dynamics will add Alpha to any investment strategy. The following are important factors to consider in the Small & Microcap Equity Sectors:
Russell 2000 - The IWMs are consolidating near all-time highs. The top of the range has been around $142 and the bottom has been around $138. Longer-term, there may be support around the $129-130 level because this was the top and an all-time high in June of 2015.
Russell 2000 Value - The IWNs have been trading in a range over the past month with resistance around $121 and support around $117. Longer-term, the $122 level has been clearly defined resistance and there has been support around $113.50.
Russell 2000 Growth - The IWOs closed at an all-time high today but they are slightly overbought so they will probably consolidate next week. There has been support around $166.50 because it was the top of the range in late April and early May.
Russell Microcap - The IWCs have been consolidating after trading at an all-time high last week. There has been support around the $88 level because it was a resistance level last December, January, April, and again in early June.
Russell 2000 Price Earnings Ratio - The Russell 2000 PE ratio is currently 47.38. Over the past five years the low was around 30 in early 2016. The high was around 60 in the middle of 2014.
Russell 2000 Price Book Ratio - The Russell 2000 PB ratio is currently 2.30. Over the past five years the low was around 1.75 in early 2016. The high was around 2.40 in late 2013 and the middle of 2015.
Russell 2000 Price Sales Ratio - The Russell 2000 PS ratio is currently 1.19. Over the past five years the low was around .90 in early 2012. The high was around 1.36 in the middle of 2015.
Russell 2000 Price Cash Flow Ratio - The Russell 2000 PCF ratio is currently 12.45. Over the past five years the low was around 10.50 in early 2012 and early 2016. The high was around 17 in the middle of 2015.
Russell 2000 Dividend Yield - The Russell 2000 Dividend Yield is currently 1.41%. Over the past five years the low was around 1.25% in 2014. The high was around 2.10% in late 2012.
Russell 2000 Equity Momentum - The Russell 2000 Relative Strength Momentum Indicator is 57.74. This is a neutral reading. This means that it unlikely that there will be a significant move over the next few days assuming nothing out of the ordinary happens.