Pennsylvania Trust

Small-Cap Rally Is Up Against Some Resistance Levels

Small-Cap Rally Is Up Against Some Resistance Levels

The Russell 2000 is on the cusp of hitting technical resistance and other major indexes aren’t far behind. The GTI Global Strength Indicator — measuring upward and downward movements of successive closing prices — shows the small-cap stock gauge approaching 70, a level that signifies being overbought.

The S&P 500 Index and Dow Jones Industrial Average are both within 5 points of triggering the same warning.

Since 12/24/18 (using ETFs as proxy):

IWM (Russell small) +18.51%
IJR (S&P small) +17.62%
IWR (Russell mid) +18.17%
IJH (S&P Mid) +17.44%
RIY (Russell 1000) +16.64%
IVV (S&P 500) +16.06%

Disclosure: This Commentary represents a review of topics of possible interest to Pennsylvania Trust’s clients and is not personalized investment advice. It contains Pennsylvania Trust’s opinions, which may change following the date of publication. Information obtained from third-party sources is assumed to be reliable but is not guaranteed. No outcome – including performance – is guaranteed, due to various uncertainties and risks. This document is not a recommendation of any particular investment. Investment decisions for clients are made on an individualized basis and may be different from what is expressed here. Past performance is no guarantee of future results.