Small Caps Eye Breakout
Chris Kimble | Nov 25, 2019 01:56PM ET
Small Caps (Russell 2000) have lagged large caps for nearly 18 months. Is it time for them to start outperforming large caps?
What they do at (1) will send an important signal.
The Russell ETF (NYSE:IWM) has traded sideways for the past 6 months, inside of the blue shaded channel. It is testing the top of this channel for the 5th time.
This week, IWM is trying to breakout above highs of the past 6 months at (1).
While it is trying to breakout, a moving average crossover is taking place at the same time, as the RS rating from Marketsmith.com is low and could be turning higher.
If small caps break out at (1), look for it to attract buyers in the short-term.
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