SMCI - IJR Could Be Equity Market's Canary In A Coal Mine (Technical Analysis)
2024-06-11 21:08:37 ET
Summary
- Small cap stocks are struggling compared to large cap peers, with Apple Inc. worth more than the entire small cap market combined.
- Small cap ETFs are vulnerable in the stock market, with signs indicating they may lead the broader market down.
- The IJR small cap ETF is showing signs of weakness in technical charts, potentially indicating further downside risk.
If only the scale in the picture accompanying this article were balanced for small cap stocks versus their large cap peers! They are not. The scales have been tipped in favor of the very largest companies, which continue to get larger. This has created what is bordering on a generational issue for small cap stocks, which were once the apple of investors' eyes. Now, Apple Inc. (AAPL) is worth more than the entire small cap market combined...yes, I said combined...small caps have become an unnecessary evil for some investors....
IJR Could Be Equity Market's Canary In A Coal Mine (Technical Analysis)