RUSSELL 2000 GIVES SHORT-TERM WARNING -- RSI WEAKENS -- MACD LINES TURN NEGATIVE

RUSSELL 2000 ISHARES WEAKEN...Stocks are having trouble holding onto today's intra-day records.   Small caps in particular are showing some new signs of weakness.   The daily bars in Chart 1 show the Russell 2000 iShares (IWM) trading lower for the third day in a row.   Of more concern are its two short-term momentum indicators.    Its 14-day RSI line in the top box has fallen back below overbought territory over 70 for the first time in nearly a month.   In addition, its daily MACD lines in the middle box are turning negative for the first time in nearly two months.     Small cap stocks have led the fourth quarter rally and are at a historically high level of 34% above their 200-day average.    So any sign of weakness in smaller stocks may be a warning that the yearend stock rally may also be stretched on the upside.   If the IWM does continue to weaken, its first test will be its 20-day moving average overlaid on the daily price bars.