The Small Cap has pulled back more than the S&P 500 but that is to be expected because it is suppose to more volatile which means more the risk reward is greater. So when things are good people are happy but whine like hell when things go south. Looking at the chart closely you will see that it was over bought and appears to be consolidating from the recent gains. The one thing that is most concerning to me is that the CBL failed. The second thing is that price is very close to the 50 day moving average and if it does not reverse soon, bailing out will be our only option. If you look closely, Thursday we did have a new higher pivot low, which normally means price is reversing to the upside, but Friday we got no confirmation. What we need to happen Monday is for price to go sideways or up. Consolidation is good as long as price continues higher in the near term.
So for now we hold and watch. If your outside looking in, I would wait until price clears the horizontal green line for a re-entry.
Here is the International index daily and it is identical to the Small Cap so I nothing new to add. This is also a watch.
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