Yes I do. The small caps have certainly had some strong relative strength, especially compared to the Nasdaq 100. Call me a pessimist but I see that more as a red flag than anything else as the lower quality (small caps) stocks have been rallying & broken to new highs while the higher quality & much more significant (to the stock market & economy) large caps stocks ($SPX & $NDX) have under-performed & have failed to make new highs since Nov (SPX) and Oct (NDX).

Maybe the large caps start to rally but as of now, this looks like a dash-for-trash with lower quality stocks out-performing higher quality stocks. It will be interesting to see if A) if yesterday’s rally in the SPY is faded today as I expect it will be and.. B) if the small caps hold up or play catch-up to the downside.

Nearly 20% of the returns from the the Russell 2000/IWM are attributed to the financial stocks followed by a nearly 17% weighting in information technology, both of which were the primary drivers of the recent near-vertical, post-election rip in IWM; both of which also very much look poised for at least a decent pullback any day now. The KRE short exceeded its suggested stop yesterday but still looks like one of the best sector shorting opps right now. Of the big post-election rip in IWM, the regional banks were the primary drivers & will most likely be the driving force behind the next correction in IWM.

I saw your target of 2083.6 in the blue box. I then saw what is expected after price moves below the blue box as shown in the past.
It will be a long drawn out correction!

Thanks for reminding me!

Why 5% drop isn’t a good enough reason? Lol If not, then see my SPX wedge break chart…

Why Joe? What are you seeing? I am expecting some correction in the next few days, maybe 5% and then stumble into year end.