Can Small Caps Lead the Market Higher? Video Analysis

August 26, 2023

Mish's Daily

By Mish Schneider

Small caps as measured by IWM are key for the fall and into 2024.

You can also look at SML S&P 600.

IWM could be forming an inverted head and shoulders bottom going back from the start of 2023. (see the rectangle area of the IWM chart)

SPY QQQs, on the other hand, could be forming a head and shoulders top. (See rectangle area of the QQQ chart).

If this does not tell you where we are at--equal potential to see IWM lead us up if clears back over 190 or-

A more significant down move if fails 180 under the pressure of QQQs should they fail the head and shoulders neckline.

Our MarketGauge quant models are aside in Small & Mid-Cap Earnings Growth yet long small cap earnings growth.

This means that the strength is in the stocks that have merit based on earnings and not as correlated to the indices.

Have a listen to August 24th live coaching session where we cover the indices, economic modern family, and market outliers.

And stay tuned as Monday August 28th on the close of the day, Mish will be guest hosting for David Keller on Stockcharts The Final Bar.


If you find it difficult to execute the MarketGauge strategies or would like to explore how we can do it for you, please email Ben Scheibe at [email protected], our Head of Institutional Sales. Cell 612-518-2482

For more detailed trading information about our blended models, tools, and trader education courses, contact Rob Quinn, our Chief Strategy Consultant, to learn more.

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Mish in the Media - All clips here

Business First AM DBA 08-23-23

Business First AM Nvda 08-22-23

CMC Markets Trading Oil, Gold, Silver NVDA 08-23-23

Gold Outlook Kitco 2 08-18-23

Gold Outlook Kitco 08-18-23

Schwab Network with Nicole Petallides 08-21-23

Your Daily Five 08-18-23

Daily Briefing Real Vision 08-17-23

Business First AM 08-13-23

CNBC Asia 08-10-23

StockchartsTV Final Bar with Dave Keller 8-10-23

Benzinga Morning Prep Show 08-10-23

Business First AM 08-08-23

Yahoo Finance 08-01-23


Coming Up:

August 28 Yahoo Finance Before the Bell

August 28 Chuck Jaffe Money Show

August 28th Making Money with Charles Payne Fox Business

August 28 Guest host for the Final Bar, StockchartsTV

Mish will be on break August 30 and return Tuesday September 5th.

September 7 Singapore Breakfast Tadio 89.3 FM

September 12 BNN Bloomberg

September 12 Charting Forward StockchartsTV

September 13 Investing with IBD Podcast

October 29-31 The Money Show


ETF Summary

S&P 500 (SPY) 440 now back to pivotal

Russell 2000 (IWM) Popped off the key support. 185 pivotal

Dow (DIA) Will watch to see if it can back over 347

Nasdaq (QQQ) 363 pivotal

Regional banks (KRE) Still needs to get back over 44 to be convincing

Semiconductors (SMH) 150 back to pivotal

Transportation (IYT) 239 still support to hold with 252 biggest overhead resistance

Biotechnology (IBB) Compression between 124-130

Retail (XRT) Has been and remains to be an underperformer and concern going forward.

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