Playing Just the Tip with Small Volume

The ETFs for both the small caps and consumer discretionary stocks are playing “just the tip,” with small volume. In other words, the breakouts they saw late last week will be under intense scrutiny on Monday, especially since the moves represented only a marginal breach of resistance and were on tepid volume relative to the prior sell-offs. Both of those areas of the market, small caps and consumer discretionary, should be pretty good indicators of risk appetite.

In sum, the bulls performed admirably last week and once again made fools out of aggressive bears, but I am far from giving the all-clear signal until we see these moves hold.

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