Watch the Small Caps

By | November 29, 2016

The iShares Russell 2000 ETF (IWM) formed a large bearish engulfing candle in Monday’s session that encompassed the previous two day range. It has rallied over 16% from its low early this month to its high last week and is technically overbought. The relative strength index reflects the overbought condition and the percentage volume oscillator, a MacD representation of volume, has made a bullish crossover and is below its center line. The small-cap stocks have led the broader market in the past and their price and volume action should be monitored carefully.

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