Beware the small caps
They may be small, but they are, none the less, powerful and make up a large part of the market. Yes, I'm talking about small caps. If you've been reading my last few posts you'll know how I think the small caps lead the large caps when the market starts to turn over. Check this out:
In the last 5 trading days the Russell 2000 is down 1.35%, while the DJIA (Green) S&P (blue) and NASDAQ (red) have maintained a relatively flat level. This setup has my attention.
Here are today's scores:
The RumWave scores are declining, but are not at the point of inflection lower. If it does break the inflection point and it looks like the charts are loosing steam I'll probably re-enter a short trade. For now, I'm just a spectator.
How 'bout oil today? Not a bad recovery. Could it be the start of the October climb I mentioned in yesterday's post? Not sure, but it looks like it! I may buy some Oil ETF tomorrow while I wait for the Dow, I'll let you know if I do.
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GOOD LUCK TOMORROW!