How the small cap breakout could be short-term bearish

Mid-week market update: Small cap stocks, as measured by the Russell 2000 and S&P 600, staged convincing upside breakouts in the past week. Both small cap indices are now testing key relative resistance zones against the S&P 500.

 

 

Even though this seems to be counter-intuitive,  such a development could be bearish for the S&P 500.

The full post can be found here.