Small caps, in the long-term, have done very well over the past 25-years. Below looks at the Russell 2000 since 1990.
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Small Caps have rallied big time inside of rising channel (1). Right now small caps are attempting to break above the top of its rising channel at (2).
If small caps can breakout, it would be a positive price event, as it was unable to do so back in 1999 and 2007, when presented with the same opportunity.
What happens at (2), will send an important message to small and large caps going forward. Keep your eye on the breakout level, as this breakout test, is very important for the Risk On trade in stocks!
