Members of 12631 and the Weekly Strategy Session know that the Russell 2000 small cap-dominated index has led the charge higher off the mid-November correction lows. Today, that index made new all-time highs. It doesn’t seem like it, or feel like it, but they exceeded those 2007 highs nonetheless. It can be tough to block out noise, especially the likes of we have seen lately. However, the high beta small caps continue to point to much-improved risk appetite underneath the surface.
As for the short-term, I am letting the dust settle from this morning’s pop. I suspect out of position latecomer chasers might get a bit frustrated intraday before secondary buy points develop.
Overall, though, watch those small caps.