Watching for a Small Cap Breakout

The small caps didn't participate in yesterdays rally but there is a good chance this is about to change. The Russell 2000 is flirting with a break out into new 52-week highs so we may start to see money flowing into the quicker moving small caps as we head into the second half of the week. It is likely that the Fed release yesterday will be hashed over for a few days as analysts try and determine if they are done raising rates for now. The market so far has reacted quite positively to the release and there is at least a good chance that the Fed will take a break here to give the economy time to digest the latest round of rate hikes. Overall there doesn't seem to be anything in the report that threatens to derail this latest bull run so we should start to see the market climbing higher once again now that a base has been building over the past couple of weeks.