Small caps break out to new high for the year in positive sign for the whole stock market

  • 📰 CNBC
  • ⏱ Reading Time:
  • 32 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 16%
  • Publisher: 72%

Business News News

Business Business Latest News,Business Business Headlines

The small cap Russell 2000 jumped to a 52-week high Monday, signaling it may be set for a breakout that could help lift the entire market.

"The dynamics of this market are changing. The definition of this new uptrend that's developing is that pullbacks should be shallower and shorter lived and and the upswings should be stronger," said Ari Wald, technical strategist at Oppenheimer. "I think this is a market where global equities are breaking out across the board. It's not just the U.S. large cap growth anymore. It's U.S. broadly, and now small caps, a big breakout in the Russell 2000 today.

Frank Cappilleri, head market technician at Instinet, said the move in small caps was a positive, but the gains will need to hold. Cappilleri said just a third of the S&P 500 are at or within 3% of all-time highs, and a broader range of stocks need to join the rally so small caps are a welcome addition.

"I think it's bullish because this has been a lagging group and they're finally breaking out," said Sohn. "If you were to look at what's helping this move, it's a sharp acceleration from biotech stocks. That's the second largest weight in the Russell 2000."

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

The 1% Dude's will go down with the ship. The Don says let the 98% eat cake!

ULTRA ENRICHMENT

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in BUSÄ°NESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

12 podcasts to help manage your company or small business's finances - Business InsiderTo help you get comfortable wearing that CFO hat, we rounded up 11 company founders and small business owners to recommend their favorite podcasts.
Source: BusinessInsider - 🏆 729. / 51 Read more »