Momentum Monday – Will Small Caps Catch Up with Large Caps?

The charts on Momentum Monday are powered by MarketSmith´╗┐

The small-cap ETF Russell 2000 – IWM is setting up for a potential breakout near 160. There’s a chance it will try to catch up with the large-cap ETFs, SPY and QQQ which have been making new all-time highs for three weeks in a row.

The biotech sector continues to be on fire. For a third Friday in a row, IBB went up more than 1.5%. The smaller-cap biotech ETF, XBI is also setting up for a potential breakout.

Biotech is not the only healthcare sector that has been hot in the market. There are quite a few medical devices stocks that are breaking out or setting up for a potential breakout: ISRG, INSP, GMED, NVCR, etc.

The market continues to show its affinity to semiconductor stocks. Those that crushed estimates this earnings season, gapped to new 52-week highs and followed through higher. Those that missed estimates and initially pulled back have managed to bounce back for the most part.

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