This Market Has a Napoleon Complex

Although it is true that the Nasdaq stocks housed in the QQQ are actually still green as I write this, the truth of the matter is that the small caps in the Russell 2000 Index (or IWM ETF) are displaying such ostentatious price action as to demand our attention on a daily chart more closely than usual.

The reason why the little guys command our attention is due to how sensitive the rest of the tape seems to be to their violent fits and starts.

Case in point: Today's various rally attempts seems to be blunted each and every time IWM flipped back red.

And, now, as we work our way through the final hour of today's session the IWM is down nearly 1%.

On the IWM daily chart, updated below, you can plainly see the $154/$155 area served as harsh resistance after the latest rally. 

Thus, as attractive as some long setups are here, such as the SNAP action today, the small cap weakness sees me adopting much more of a wait-and-see approach regarding new longs. 

CRM BOX MNST headline the earnings spotlight tonight.

But if small caps do not stabilize soon, this market's Napoleon Complex may trump all other factors in the near-term.