THE WEEK AHEAD: 3/4/24
"Indecision is the Thief of Opportunity." - Cicero Small Caps Stand Tall: The Russell 2000 looks ready to join the rally parade with the IWM jumping 3% last week, CLOSING at highs for the WEEKLY range and respect that it is now making it a habit finishing in the upper half of the WEEKLY range, doing so for the last 4 weeks. I will not disagree with anyone calling this a "rolling" bull market, as now the small caps take their turn showing some real strength. My opinion is that the area of former resistance just below the very round 200 number should now be support, or at least a very good risk/reward stance going forward. To me this chart looks similar to the XBI with both being sensitive to interest rate fluctunations and notice Q4 2023 the correlation between the two was almost perfect at a value of 1. The MONTHLY chart shows nice digestion of the November-December surge and is now well rested for a possible powerful move upward (notice the low of this budding cup base found support at a prior double bottom breakout from November 2020. Since the start of February it has kept pace with technology as seen here, and perhaps another sign of "risk on" is the stalling nature of the old stodgy Dow Jones, even as they attempt to spice it up with the recent addition of AMZN (the index now has just five true industrials).