Perky Small Caps

Forget about the worries on your mind
You can leave them all behind
--DeBarge

Bulls have to be encouraged by recent perkiness of small stocks as reflected by the Russell 2000 Index ($RUT).

When small caps underperform their larger brethren for extended periods of time, it is indicative of dwindling risk appetites among investors. The racier small issues carry more reward potential but also more risk.

The uptick in small cap interest, if it continues, would reflect willingness among investors to take on more risk. This would augur well for the tape.