Thursday, February 26, 2009

Stock Market Commentary: Small Caps Under Threat

Tech took it hardest but the recent lows weren't violated. Large caps escaped relatively unscathed but their long term picture remains poor. The index to watch is small caps.


The November closing low of 385 is under threat and will likely see a test tomorrow. If the loses accelerate it will drag tech along with it. Small caps usually play the leadership role so weakness in this index will have far greater consequences than the current large cap meltdown.

The malaise continues.

Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, market alerts and stock charts website
 
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