Russell 2000 Growth - Every Picture Tells A Story

Here at Excalibur Pro, we unabashedly marvel over many of the tools on our website. Clearly, one of our favorites is Regime Change, which is driven first and foremost by the Markov process.

One of my colleagues, Yogi Thambiah, follows the Russell indices pretty closely. And one day recently, he noticed something interesting with the Russell 2000 Growth Index ... and Markov.

In March, the index had been drifting lower. On March 22, it had a pretty steep decline - 2.62%. Markov detected something and there was a state change that day. Next day, little price movement in the index. But then it began moving higher and through March 31, the index rose 4.68% since that Markov state cross.