![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh-Fqmbgs6pFtMUKvL45bFiYH1n3flutYigloxkjGI_JQq6E-W2TC-n3WFSZulCwqAlNyjMet_O18x16tQ7MRw2KcbTuU4dtEjrWgRTzg_rcjTHRiulZlcANGL2jVc_uqzJEkptqGPVt4o/s400/Chart+of+IWC.gif)
a.) Prices move higher on a strong bar
b.) Prices inch higher, buy print small, bearish bars
c.) Prices again move higher strongly
d.) Prices consolidate
e.) Prices again move higher on a strong bar
However, notice there is a consistent uptrend and the bars are all moving to a place.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgNsIZWAISjF6epNcRG7UovlbT8h5vgUd9lVmf5kmMrFI_J2Faqy-d062hyphenhyphenA9pfec1Lj_DYE2g490UkPTTcrrFC1hqXqsycXCZyPxpvroG7f_fWq3dfMkfqqpiOFRx5vE4NQvIUBpMUThw/s400/Chart+of+SPY.gif)
With the SPYs, we have three boxes of price movements, but there is little strong direction.
This is why the smaller cap issues have been leading the market.