Small Caps Still Leading
03/12/2010 9:36 am EST
Both the S&P 400 (mid-caps) and the S&P 600 (small caps) have moved above their upper trading channels. The RS for the S&P 400 broke out to the upside on February 16, and it is now up 12.5% from the February lows and continues to look strong. Next major resistance is in the 800-824 area. The S&P 600 has been even stronger, up 16% from the lows versus just 10% in the S&P 500. The RS line shows no signs yet of topping out with strong chart resistance in the 400 area.