It is messy out there today. Small-cap stocks continue to lead which is keeping breadth just slightly negative but all the major indices are slightly negative and there are no notable pockets of positive momentum. It is just a lot of churning and random movement.
Small-caps have become extended and are due for some rest but there isn't any rotation out of the group and into the senior indices. As I mentioned in Columnist Conversations the strong dollar has helped the small caps primarily because it has caused a rotation out of big caps that are hurt overseas by a higher dollar.
Bonds have been the main catalyst for the strong dollar but there is some bounce in the 7-10 year Treasury bond fund (IEF) today which has slowed down the dollar advance. It isn't a meaningful turn, but it is helping to keep the indices around flat and has actually caused precious metals to bounce a bit.
We have had quite a few good small-cap opportunities this week but there isn't much new on the radar today. I continue to watch Health Insurance Innovations (HIIQ) for a solid break over the $30 level, but at this juncture I am in wait-and-see mode for setups to better develop. The biotechnology sector has had plenty of opportunities this week but now they need to reset.