IWM/Small Caps Losing Upside Momentum

Let's take a look at three big picture set ups: SPY, IWM, and the SPY/IWM Ratio chart, all of which show the deterioration of the Russell Small Cap ETF (IWM) in relation to the Big Cap Spy.

Yes, historically, in the latter stages of a bull move or a bull market, this divergence is very likely, that is, the small companies losing upside momentum relative to the "go-to" mega-capitalized companies.

Whether or not that is the case now, rather than merely a temporary rotation out of IWM in favor of SPY is anyone's guess in this particular market.

From a technical perspective, as long as IWM is trading below its 20 DMA, now at 149.11, I will view it as suspect on the upside, and vulnerable to downside continuation off of its 10/09 all time high at 150.58

11 06 17 SPY Day GIF
11 06 17 SPY Day GIF
11 06 17 IWM Day GIF
11 06 17 IWM Day GIF
11 06 `17 SP IWM Ratio chart GIF
11 06 `17 SP IWM Ratio chart GIF

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