Injured Little Guys in the Way of a Championship Run

The small market capitalization stocks housed the Russell 2000 Index are flipping back to red as I write this. Despite the fade in the IWM (ETF for the Russell), the senior indices remain soundly green, as the Nasdaq leads higher and the likes of AMZN FB NFLX flash signs of staging new legs higher. 

Nonetheless, if we are to see a broad-based rally in the market headed into June then I suspect the small caps will need to get with the program and quit being a thorn in the side of the bull case. Specifically, the IWM needs to reclaim $138 as a definitive support level. Instead, $138 is acting like a brick wall of resistance above. 

To be sure, there are plenty of quality software charts and other emerging sectors we have highlighted for Members with quality long setups.

But to really get that energetic, sustained move higher the small caps are going to need to at least retest prior highs above $140 from earlier this year. More on this in my usual Midday Video for Members.