RUT, Russell 2000 p.s.

rut may 18 log 2013

Further to the previous blog of the Russell 2000, we have added a semi-log chart simple because it shows the relative proportions of each leg much better and as a result makes the notion of an expanding triangle all the more palatable  and/or convincing. For comparison purposes we have added the DAX below, also on a semi-log scale. As mentioned before, the Dax is a total return index and therefore should not be compared directly with indices that are not also constructed on a total return basis. Nevertheless it is interesting that the DAX sports the exact same diagonal but instead of expanding it contracts. (the time scales are different!).

dax log 18 may 2013