In this week’s technical analysis of more than 400 sector and ETF charts, we came away with another capitalization theme: Small Cap Stocks.

On chart after chart of small caps ETFS and Indexes, we saw the same patterns emerge: Short term moving averages about to cross over longer term averages and a pretty good bet that the MACD will move above zero.

This chart of IJR is nearly a carbon copy of what we saw with the following ETFS; IJS, IJT, JKJ, JKL and the Dow Jones low caps and the Dow Jones Small Cap indexes

The Correct Call is cautious at this moment as our models are still in the red. We also are not impressed with some of the market internals as new lows continue to outpace new highs in the NYSE, NASDAQ and the S&P.

We have screened more than 1000 companies looking for buying opportunities; our subscribers can turn to The Correct Call Calendar for 1 that passed our test.