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Russell 2000 Breakout Candidate & PYPL Thoughts
A broadening of the market rally (not just in equities) has indeed been taking place for the past month and a half or so.
We have been highlighting and participating in this (for example by being long CPER) and we still see it continuing.
Small caps via the Russell 2000 (IWM etf) are still toying with a breakout…but looking increasingly likely to actually take place upon a push and hold above $208ish). The IWM is now bullish trend on the Market Rover.
The below chart does a great job showing how the S&P 500 (orange line) broke out long ago and small caps may now get their chance to do so…which may also see the S&P 500 not only underperform in relative terms, but also absolutely.
Along with the broadening we are also seeing more stocks wake up that have had a tough time for years…such as Paypal (PYPL). The stock is building a big base and while not yet bullish trend on the Market Rover could soon flip the switch. We are monitoring this closely.
CHART
