March 24, 2011
Shares of the small cap ETF Ishares Russell 2000 Fund (NYSE: IWM) rose a small fraction in Wednesday’s March 23 stock market advance.
IWM closed at $81.30 three days ago but has been unable to surpass this level since, closing at $81.12 on Wednesday.
When small caps lag behind the big caps, and in this case also the Nasdaq 100 tech issues, it is something to keep an eye on. A yellow flag.
Often the small caps move in the next direction before the rest of the market and that points to a possible reversal from current levels and a test of the prior correction lows at about $78 a share.
The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy holds a position in the Ishares Russell 2000 Fund.