While the large-cap S&P 500 remains in “correction” mode, the small-cap Russell 2,000 is in “breakout” mode. At the end of last week, the Russell 2,000 managed to break above its early 2018 highs to finish the week at new all-time highs.

Below are two trading range charts of the Russell 2,000. The first is a one-year chart, and the second is a three-year chart. While the index is now “overbought” based on its current distance above its 50-day moving average, its chart pattern still looks quite bullish from a long-term perspective.

Small caps are generally considered to be a “leading” indicator for large caps, and if that’s the case this time, the S&P 500 has new highs in store as well.