As one would expect during a bull market, small caps have been a leading performer since the low of March 9 last year, with the Russell 2000 Index gaining 96.7% compared with the S&P 500 Index rising 70.9%.

Considering the last few days, however, it would seem if small caps have been tiring, resulting in the Russell 2000 Index being the only major US stock market index registering a loss for the past week as shown below.



A few days’ underperformance is hardly grounds for drawing meaningful conclusions, but it is worth watching this space for a pointer regarding the overall market.

I will leave you with a chart of the ProShares UltraShort Russell 2000 ETF (TWM), a fund that seeks daily investment results corresponding to twice (200%) the inverse (opposite) of the daily performance of the Russell 2000 Index. Being Saturday morning, I am posting the picture without further comment for you to ponder the most likely short-term direction of this bear ETF, and by implication the next move for small caps and stocks in general.



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