Small-Cap and Micro-Cap Stocks Are Breaking Out To New All-Time Highs

Small-cap and micro-cap stocks are breaking out to new all-time highs after being in a holding pattern for 10 months, which includes the Small-Cap Russell 2000 Index, the S&P Small-Cap 600 Index, and the Russell Micro-Cap Index. These small-cap and micro-cap indexes have gone nowhere for almost a year, and now they are finally breaking out to all-time highs. 

Along with the breakout in small caps confirming the S&P 500’s new high made this week, the Dow Transports have also broken out to new all-time highs.

In the charts below, each small-cap index ETF is currently trading well above its 50-day (blue line) and 200-day (red line) moving averages.

Here's a chart of the iShares Russell 2000 Index ETF: 

Here's a chart of iShares Core S&P Small-Cap Index ETF: 

Here's a chart of the iShares Micro-Cap Index ETF:

The weight of the evidence clearly indicates this breakout of small company stocks to all-time highs is a bullish (not a bearish) development for the long-term, well-diversified investor.

Do you have five minutes to make sure your portfolio is taking you where you want to go?

If you'd like us to evaluate your portfolio risk to make sure it's properly aligned with your personal preference for risk,  you can click this secure link to take a brief five-minute risk quiz. After you've completed this risk quiz, we'll contact you to discuss how your current portfolio is positioned to meet your long-term financial goals.

Investing involves risk including possible loss of principal.  This information is provided for educational purposes only and should not be construed as research or investment advice, and is not a  recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy.