Dow and Russell 2000 Are Rallying But Don’t Call It a Breakout Just Yet
Tom Essaye on why broader confirmation is still needed for this to be a real bull-market shift
Dow Jones and Russell 2000 Are Joining the Stock Market Party. Would It Be a Game Changer for the Bulls?
The recent surge in the Dow Jones Industrial Average and Russell 2000 has caught investor attention, raising hopes that a broader bull market is finally taking shape.
But according to Tom Essaye, founder of Sevens Report Research, this may not yet be the breakout moment investors are hoping for.
“Investors shouldn’t automatically increase their exposure just because the Dow is near record levels.”
— Tom Essaye, Sevens Report
Essaye emphasized that while the Dow’s rally is a positive development, it reflects only a narrow segment of the market—just 30 large-cap companies—and doesn’t fully reflect market breadth.
“More meaningful progress would come from record highs in the Russell 2000 or equal-weighted S&P 500,”
— Tom Essaye, Sevens Report
While both the Russell 2000 and equal-weighted S&P 500 have made notable moves recently, they still remain below prior record levels, suggesting that the broader market has more work to do before confirming a sustained breakout.
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