Sector Investing

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So the next question is can the Russel 2000 actually be outperforming in the later stages of a bull run? If so is it better to question that outperformance or climb on the train?

It does not matter to me if we are talking about an individual stock, sector, ETF, or major market index we have to give the greatest weighting to longer term charts.

Is the Russell 2000 actually outperforming? Or should I say was it? Look carefully here at this chart and you will see that the S&P 500 has continued its outperformance. Check out the yellow line on the six month chart:



Market rallies are broadest and strongest when they are led by small caps. This chart calls into question just how strong the rally was the last six weeks:



But lets get to the longer term charts. Note the possible double top on the Russell 2000 at 868.50. No new high on the Russell 2000 at all:



The monthly chart shows the same potential double top:



Of course the FED certainly is making every attempt to add fuel to whatever recovery is now currently underway.

RtS