Thread: Nasdaq and Small Caps Lead

Originally Posted by buckeye113

I have noticed a pattern over the last couple of months. It seems whenever we have a down day but the NASDAQ and small caps are outperforming the DOW and S&P, that has been followed by a market rally over the next 3-4 days. The opposite has been true for up days - where the NASDAQ and small caps would under-perform the rest of the market which would be followed by a 3-4 day decline. I'm sure this pattern has not always worked but today's action suggests to me that we may be near a short-term bottom??

Good observation. The Transports have a simailar effect.

That's an interesting find. I know that there is some kind of pattern going on with these "one week of up's, one week of down's" going on but just haven't investigated anything. I will keep an eye on it too.

Looks like it may even go positive today. I've learned it's best not to hope.