Small Caps Stumble

While the S&P 500 is testing its 50-day moving average today, the smallcap Russell 2,000 looks much worse.  As shown below, the Russell 2,000 failed to make a new high along with the S&P 500 earlier this month, and today the index broke below its lows from late September/early October.  With the index now below its sideways trading range from the last couple months, the trend looks to be down.

 

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Comments

[stockmanmarc]

This yields better deals in the small cap arena! While some of the large caps pay nice dividends and will probably hold up better in a down economy their are many small caps with good balance sheets that should do well in the coming months.

[Penny Stock Alerts]

When the markets are acting up like this, I tend to take a step back and rely on some of my lists and penny stock alerts. Reason being if I'm trending to loose upwards of 4 figures/day, better to scale back on trading and rely on either the penny stocks or forex for reliable movers.