The Russell 3000 components for 2016 have been rebalanced/reconstituted and are updated at Stops and Targets. The following links show added and deleted companies as well as a comprehensive overview of the state of the markets.
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Final Russell 3000 Deletions:
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Final Russell 3000 Additions:
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Russell 3000 Analysis:
2016 Russell Rebalancing Analysis
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Excerpt from the analysis link above…
This year’s reconstitution marked a shrinking US market, with the total market cap of the Russell 3000 Index down by roughly 5% since last year’s rebalance. Globally, market size is down by roughly 10% since last year’s reconstitution, with the Russell Global Index now representing $55.6 trillion in total market cap compared to last year’s size of $61.5 trillion. In the US, the breakpoint between large cap and small cap has dropped for the first time since 2012, decreasing by nearly 15% from $3.4 billion in 2015 to $2.9 billion. The breakpoint between large cap and small cap for the Russell Global ex-US Index is down, too, now set at $2.1 billion compared with last year’s break of $2.3 billion.
…wow!
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(click image to enlarge)
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After the Russell rebalancing/Brexit fun–let’s take a look at the market-rigging paradigm that has been in place since 2009…
On the weekly bar chart above, counting the current setup, there have now been only eight instances over the past seven years where we have seen price dip below the last four-bar pivot low. Each occurrence is numbered on the chart above. In every instance except for two (highlighted in yellow at points 2 and 6) the pros have used these dips as stop sweep/reversal setups. A buy at points 1, 3, 4, 5, and 7 were all ideal entries that led to huge gains…and we have pointed out each and every one of them right here!
Recently, I have been pointing out the importance of ES 2013 in the ongoing paradigm. Let’s watch carefully now to see if the pros turn this into buy signal point #8. That is the odds on favorite considering past behavior–but eventually the paradigm that has been in place since 2009 will end. We will know that has happened if/when price is unable to quickly recover and sustain above the last pivot low, which in this case is ES 2013. Very simply stated–market momentum in the intermediate term is bullish above 2013, but bearish below…and you can study the chart at the numbered points above to see the implication of that statement. Pretty cool, eh?
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Stops and Targets agrees with my chart analysis on the intermediate importance of ES 2013, which is exactly where price is as I type.
…my .02
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