The S&P 500 is now bumping up against resistance, so it’s normal if stocks take a breather here. Small caps haven’t yet reached such lofty levels. With the S&P 600 Small Cap still 5% below its 52-week high, implying more near-term upside potential. That’s good for us.
The iShares Biotech ETF (IBB) pulled back a little this week, but not in concerning fashion, and the iShares Semiconductor ETF (SOXX) is moving sideways.
Small caps (+1.9%) outperformed large caps (+0.6%) over the past week, and boring old value small caps (+2.2%) partied harder than exciting growth stocks (+1.6%). Energy and health care danced the hardest, but everybody joined in the festivities. Small cap sector performance over the past week is below.
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