Watching the Small Caps

I am watching the small cap stocks as a measure of equity investors propensity to send the entire market higher. Although the large-cap indexes (S&P 500 and the Dow) traded higher in yesterday's trading, small caps did not participate. In face, the Ishares Russell 2000 ETF (ticker IWM) not only did not participate in the rally, it broke the uptrend that began in November on increasing volumes. This is one to watch