Wednesday, February 17, 2016 1:42:42 PM
2/17/16
SMALL CAP INDEX BOUNCING AS WELL... Over the last week, I've shown two of the market's weakest groups -- the transports and banks -- having reached potential support levels and in a deeply oversold condition. Both are helping lead this week's rally. Small caps are another weak group in the same positon. Chart 8 shows the S&P 600 Small Cap Index rebounding from last week's successful test of its January low. Elliott Wavers will notice the five-wave decline from the start of December, which usually signals that the downleg has been completed. A close above its early February peak would turn its short-term trend higher. [That five-wave decline also shows up in several other market indexes]. The long-term chart of the SML is also encouraging.
SMALL CAP INDEX BOUNCING AS WELL... Over the last week, I've shown two of the market's weakest groups -- the transports and banks -- having reached potential support levels and in a deeply oversold condition. Both are helping lead this week's rally. Small caps are another weak group in the same positon. Chart 8 shows the S&P 600 Small Cap Index rebounding from last week's successful test of its January low. Elliott Wavers will notice the five-wave decline from the start of December, which usually signals that the downleg has been completed. A close above its early February peak would turn its short-term trend higher. [That five-wave decline also shows up in several other market indexes]. The long-term chart of the SML is also encouraging.
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