Small-cap exchange traded funds were outperforming the S&P 500 in Friday’s rally after Federal Reserve Chairman Ben Bernanke’s speech, but that hasn’t been the case in recent weeks, which has some technical analysts worried.
“The iShares Russell 2000 (NYSEArca: IWM) is in the midst of a tightening triangular range. Today’s wild intraday swing is a typical coiling range trait,” said Tarquin Coe at Investors Intelligence in a newsletter Friday.
Triangle patterns often suggest indecision in markets and a consolidation before the next big move. [Stock ETFs Waver]
The small-cap iShares Russell was up 2.4% in afternoon trading Friday, while the SPDR S&P 500 ETF (NYSEArca: SPY) gained 1.5%. [Stock, Gold ETFs Rally After Bernanke]