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The S&P 400 Mid Cap Index closed back above the 200-day MA on Thursday and the RS has moved back above its MA, which is encouraging. A break above the trend line resistance is needed to confirm that the mid-caps are leading the S&P 500. Though the Small Cap S&P 600 has also bounced, it is still below its 200-day MA and the RS is clearly in a downtrend. This suggests that for now, the small caps will lag the S&P 500.

Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.