ETF Chart of the Day: Small-Caps Hit Fresh All-Time High

ETF Trends

The iShares Russell 2000 (IWM) rose to a new all-time high at Tuesday’s open as small-cap ETFs continue to outperform the S&P 500 since mid-April.

Meanwhile, the relative performance chart for IWM versus the S&P 500 is at its best level since mid-2011, according to Investors Intelligence technical analyst Tarquin Coe.

“Momentum is not overbought, so further gains are possible. However, one needs to be on their guard, as momentum could roll-over and print a bearish divergence,” he wrote in a newsletter.

“We remain cautious the market in general over the medium-term so stops on new small cap longs need to be as tight possible, as they could turn on a dime,” Coe added.

IWM, the small-cap ETF, is up 8.7% for the trailing three months, versus a gain of 5.5% for the S&P 500, according to Morningstar.

iShares Russell 2000

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Full disclosure: Tom Lydon’s clients own IWM.

The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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