The small caps might be developing a downtrend here.
However, on a bigger picture, the Money Flow turned positive and the small caps will remain in a bullish pattern unless they break below the IWM $135 support. In the present low volatility environment, such a move would imply a general market crash, which is not what is in the data.
As a matter of fact, the IWM/SPY ratio indicates that now is the time to buy small caps.
On the Futures, the S&P500 and the Dow did not revert their respective negative divergence.
The Yen is still being accumulated while the 10Y Treasuries are still being sold. These patterns are identical to yesterday's.
Conclusions:
Next week is an options expiration week, which is generally equities bullish. However, the week before we could experience some market volatility.
Even though the small caps look weak, I believe that they will be pulled up by the rest of the market in the coming days.
