The next downswing in small cap stocks could get very messy.
Using readtheticker.com Hurst cycle tools we can see that both small cap stocks and crude oil may be swinging down over the next few months. The easy money has been made on the upswing. Yes, there may be little more to go on the upswing, but not much. When the cycle works it’s a good idea to keep an eye on it.
Small cap stocks are a good measure of Risk On vs Risk Off. Remember true accumulation sees the reduction of volatility. So far we have not seen this, which suggests distribution is the main theme of this consolidation, and lower prices normally follow.
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