Mid Caps Leading Small Cap Stocks

11/01/2010 9:42 am EST


Thomas Aspray

, Professional Trader & Analyst

Click to Enlarge

The small and mid cap stocks underperformed the S&P 500 throughout much of the summer as the relative strength (RS) lines on both the S&P 600 and S&P 400 were declining. This changed in the latter part of September as the downtrend in the RS for the S&P 600 was broken (see arrow). The RS line is in an uptrend but is still below the April highs. The mid cap S&P 400 held up better during the summer and the RS line is above its April highs even though the index is about 2% below the April peak at 852.90.

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

Related Articles on STRATEGIES

Keyword Image
6 Best Stocks Yielding Over 5%
10/11/2018 5:00 am EST

Using our proprietary dividend screener, I found hat nearly 1,100 individual equities offer yields a...

Keyword Image
Crosscurrents and Caution
10/10/2018 5:00 am EST

History is a stern taskmaster and provides ample evidence that not only do corrections occur, bear m...