Small Caps Are Outperforming Again: Technical Analysis

185

QQQ vs IWM? In some ways, it’s the big debate of 2021. Will traders stick with megacap growth stocks, or ride fast-moving small caps as the economy reopens? Or will they simply rotate between the two, guided by events and price action?

Right now could be a time when a flip is taking effect again. This chart shows relative strength of the Russell 2000 Small Cap ETF against the S&P 500. Notice the long period of outperformance that began in October as …

Russell 2000 ETF (IWM), daily chart with key patterns marked, courtesy of TradingView.

For more, please click here to view the related idea and chart analysis on TradingView.

Advertisement
Trade in milliseconds

Explore the most actively traded options

Trade 600+ futures products on an advanced platform