Chart of the day : the percentage of Russell 2000 index members trading above their 50-day Moving Average fell below 40%, compared with about 80% for the S&P500, a smudge off a record gap.
It’s too early to tell whether this can morph into something larger, but previous instances have led to subsequent pressure on U.S. stocks
Such a selloff in the markets could also be attributed to Biden’s new tax plan, which will propose almost doubling the capital gains tax rate for wealthy individuals earning $1 million or more per year to 39.6% to help pay for a slew of social programs and the proposed infrastructure bill. The new marginal 39.6% rate would be an increase from the current base rate of 20%.
(Bloomberg)
