Saturday, May 14, 2011

First, the bull market in small caps (IWM)


Lena said...

I am not sure what this could be attributed to, but generally following a downturn small caps
are positive and profitable, because of increased mergers activity in the market.

pythagoruz said...

Yeah, I look to the small caps for guidance because they tend to lead the market up and down. The Russell 2000 had been looking good as of last weekend (this post) but the past two days have taken it back below its 50 dma. Things could get nasty quick if IWM doesn't recover ~$83 soon. Then again, IWM dipped below its 50 dma for a few days in March and that didn't stop it from making new highs in April..