Small caps are showing leadership and the NASDAQ feels the January Effect.
The S&P 500, the benchmark for most money managers, is about to wrap up the month of January with a gain of about 4%. This is a little less than double what the index gained in January of 2011.
The Dow Jones Industrial average is staring at a 3% gain for the month. In 2011, the Dow posted a gain of 2.75%.
Tech heavy NASDAQ is looking for a gain 7.8%, well ahead of the 1.3% it gained in 2011.
The Russell 2000 Index is showing a gain of just over 7% for the month compared to a loss of approximately 1% in January 2011. Small caps have been leading the market for the last several weeks.
So we saw a January Effect in small caps, but will it continue?.
Given that February is a historically flat month for the market, how do you think the returns in January will affect investor sentiment in February? You are, after all, just what the sentiment index is looking for!
Let us know what you think will happen in February.
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