Dow and Russell could extend lower

Dow and Rusell2k have rallied back and may be finding seller supply at current levels. If prices go lower and fail to hold recent support, then an extension of the down move could be in play.

The majority of the gains stocks have been from the ai and magnificent 7 stocks (nvidia, amazon, tesla, microsoft, apple, google, meta). These stacks are a larger percentage of the sp500 and nasdaq than the dow and russell. The rest of the economy may not be fairing as well as the implied moves of the magnificent 7 which is attracting all the momentum money.

Higher rates affecting funding costs would hit industrials in the dow and the small businesses more in the russell2k.