April 4th 2011 06:31 pm

Stock Market – Small Caps Lead The Way

Above is a daily chart of the Russell2000 small cap index and as you can see this index is enjoying a very nice rally.  Out of the 4 major indices, the small caps are by far the strongest while the NASDAQ is clearly the weakest. In a strong stock market environment, the NASDAQ should be the leader but we are not seeing that take place right now which makes me cautious on the stock market. Big stocks like GOOG, INTC and AAPL have already begun making lower lows and lower highs which may be a warning sign of things to come.

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Tags: Caps, Small Caps

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