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 (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 it is attempting to breakout above highs of the past 6-months at (1).
As it is attempting a 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 IWM breaks out at (1), look for it to attract buyers in the short-term.