Karpel’s Corner: One DOWN day does not trigger a trend change; watch $RUT

Welcome to Karpel’s Corner. This is where I throw out my thoughts on the markets and share some of my favorite strategies. I keep it market-focused, and never miss an opportunity to teach trading strategies and commentate on the latest trends affecting the financial markets. Hope you enjoy today’s post!

As I said yesterday, watch Small Caps ($RUT), and they were down 1.75 percent. The broad-based indices were only DOWN fractionally, $SPY-~.35 percent. IT has put sideline money, as well as vested monies, on alert.

One market that could see some interest if Domestic Small Caps move out of favor could be the Emering Markets ($EEM), which have shown technical strength with higher highs and higher lows.

This market has not been tested in months, so I would like to see how it fares especially if we see a further 1.5 – 3 percent pullback on $RUT, then things would get interesting.

We are also entering earnings season, so we could see some natural volatilty as this summer earnings season begins to heat up.

See you next time at the Corner!