Last week the neckline held support and the $RUT got a good pop and hit a new all time high today. When the small cap stocks are doing well that means investor are willing to take on more risk and is usually good for the stock markets. It could use a little breather right now after such a vertical move.

This next chart is a ratio chart which compares the $RUT to the $SPX. When the ratio is rising that means the RUT small caps are outperforming the SPX big caps. Since February of this year the small caps have really outperformed the big caps.