Small Caps still not Confirming

Last week we had the S&P 500 ($SPY), Nasdaq ($QQQ) and the Mid-Caps ($MDY) all confirm new highs. But we have yet to see the Small-Caps ($IWM) confirm.

At this stage, I may put up a yellow flag on the current trend of the market. But I am hesitant for two reasons. First, three out of the four indexes that I watch all hit and confirmed new highs. Second, Small-Caps ($IWM) are in an uptrend.

The Small-Caps are the laggard, but there has been no test of the lows established in the beginning of May at $120. While I expect the trend to the upside to continue, I also expect some volatility to hit the market very soon.

Have a great trading day!