Monday, April 27, 2009
A Quick Look at Small Cap Stocks
Here's a quick snapshot of one of my screens, illustrating a point made in my recent tweet: the Russell 2000 stocks (IWM) are struggling at multi-day highs, accounting for some of the dropoff in new stock highs we've seen recently. That narrowing of the rally is on my radar, as it often precedes more ongoing market corrections. I would become particularly concerned about the upside for the IWM stocks should we turn down in the Cumulative NYSE TICK, as this often reflects buying and selling interest across the broad market, not just among the large caps.