Tell me where the small caps are headed and I could predict market direction. The small caps are leading the large cap indexes lower. The Nasdaq is trying to fight off the small cap decline but is struggling. The Dow is showing more weakness over the last week than in the last six weeks. It is entirely possible the small caps are finally going to retest support at 1,340 on the Russell and that could force a temporary dip in the large caps. I do expect that level to hold but there are no guarantees.
Small cap stocks have been very choppy over the last several weeks and the individual stocks have been unable to maintain a direction either up or down. With the Dow, S&P and Russell closing at their lows today there is a possibility of a continued decline on Thursday. I have no potential plays that are screaming buy me today so I am going to pass on adding a new position.
NEW BULLISH Plays
No New Bullish Plays
NEW BEARISH Plays
No New Bearish Plays