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Wednesday, November 15, 2017 8:51:18 AM
Small-Cap Woes – An Early Warning Sign?
By: Almanac Trader | November 14, 2017
November is the first month of the “Best Six/Eight Months” and it is also the first month of the market’s “Best Three-Month” span, but this November has gotten off to a below average start and small-caps (based upon the Russell 2000) are performing miserably. At today’s close, DJIA, S&P 500, NASDAQ and Russell 1000 are fractionally positive for November. This compares poorly with historical average gains over the past 21 years at this point in November ranging from 0.73% for S&P 500 and Russell 1000 to a 1.07% advance by NASDAQ. Russell 2000, off 2.10% lags well behind its historical performance of 0.77%.
Tech and large-cap stocks broadly shrugged off weakness by small-caps that began early in October, but the laggard performance has grown notable this month. Historically, market rallies of meaningful magnitude and duration are supported by broad participation. Absent this solid foundation, further upside can become constrained. It is also concerning to see small-caps retreating when major tax reform which is supposed to be beneficial to them is widely anticipated. Perhaps major tax reform is not a “done-deal.”
http://jeffhirsch.tumblr.com/post/167498189063/small-cap-woes-an-early-warning-sign
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https://investorshub.advfn.com/Market-Direction-and-Trends-26249/
By: Almanac Trader | November 14, 2017
November is the first month of the “Best Six/Eight Months” and it is also the first month of the market’s “Best Three-Month” span, but this November has gotten off to a below average start and small-caps (based upon the Russell 2000) are performing miserably. At today’s close, DJIA, S&P 500, NASDAQ and Russell 1000 are fractionally positive for November. This compares poorly with historical average gains over the past 21 years at this point in November ranging from 0.73% for S&P 500 and Russell 1000 to a 1.07% advance by NASDAQ. Russell 2000, off 2.10% lags well behind its historical performance of 0.77%.
Tech and large-cap stocks broadly shrugged off weakness by small-caps that began early in October, but the laggard performance has grown notable this month. Historically, market rallies of meaningful magnitude and duration are supported by broad participation. Absent this solid foundation, further upside can become constrained. It is also concerning to see small-caps retreating when major tax reform which is supposed to be beneficial to them is widely anticipated. Perhaps major tax reform is not a “done-deal.”
http://jeffhirsch.tumblr.com/post/167498189063/small-cap-woes-an-early-warning-sign
• DiscoverGold
Click on "In reply to", for Authors past commentaries
****************************************
*** For Market Direction and Trends visit our board:
https://investorshub.advfn.com/Market-Direction-and-Trends-26249/
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Your Due Dilegence is a must!
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