Don't Ignore This Chart!

Small-caps Attempting an End-Around on the RRG

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Small-caps are still underperforming large-caps, but the small and mid-cap indices moved into the improving quadrant on the Relative Rotation Graph (RRG) with a classic end-around play. Just go to YouTube if you need to review this play. The RRG shows performance for the S&P Small-Cap 600, Russell 2000, S&P MidCap 400 and a few others against the S&P LargeCap 100. The vertical line at 100 marks the line of scrimmage and this is the difference between a successful end-around and a failure. A move past 100 would put these three in the leading quadrant (green) and suggest that small-caps are starting to outperform large-caps. You can read more about Relative Rotation Graphs in our ChartSchool. 


Click this image for a live chart. 

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--Arthur Hill CMT

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Arthur Hill
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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