Small Caps Are Outperforming Again: Technical Analysis


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.

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