Small Caps Join

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During this mornings up-every-day-cuz-it’s-the-law rally, the IWM did what SPY, DIA, and QQQ have been doing every day: made a new lifetime high.

The Russell 2000 index itself, however, did not, although it’s getting close. This is a data peculiarity, because we incorporate the benefit of dividend payments into equities, including ETFs, whereas raw cash indexes do not.

The long view of small caps, I believe, is still the same, as represented by the IWM/SPY ratio chart. This looks ready to go full diver-down.

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