Canadian Small Caps Losing Momentum

A negative divergence over a two month period has setup between the recent high in the Canadian Venture Exchange and the MACD indicator. This index, which is loaded with small cap commodity producers, has been on a tear since August as it responded to the powerful upleg in commodities. Right now though it looks to be setting up for a potential pullback, as the momentum has slowed and there has been multiple distribution days to start the year so far in 2011.