The S&P is hovering around its highs without looking like it’s going to follow through with a breakout of its own. Unlike the NASDAQ, supporting technicals are mostly bearish, except for momentum stochastics and a slight outperformance over Small Caps.
The Russell 2000 (via IWM) finds itself back inside its base as technicals edge bearish. Small Caps have spent most of 2021 consolidating, so they are well placed to advance.
Tech stocks have been doing most of the heavy lifting in recent days but we are not seeing this strength in other sectors. It remains to be seen how long this will last, so it may be down to Small Caps to ride shotgun for bulls.