It's a final count down

So, a pretty strong day for the beginning of the week.
Patterns are in process of completing: Dow and XMI have put in new recovery highs, which was quite expected. Also, the inflation related stuff was pretty strong, as an example, the brazilian ETF has hit at new high as well. But silver wasn't impressive, unwilling to follow gold to new highs and that despite the dollar weakness.
To resume: the liquidity is dissipating, but the psychology is another matter.

Are small caps weakening?

As was expected, the big caps are the leaders of this new wave up.  The XMI - Major Market Index (20 biggest capitalizations) has  closed last Friday at new cyclical high, while others (Nasdaq, SP500) are a bit lower.
An interesting chart for small caps - RUSSEL2000. We're approaching the previously strong support level of 650. So looking at the weakening momentum, it seems to be a good shorting entry point.