It appears that following a major run-up in big-cap, high dividend stocks, investors have turned to the higher dividend small- and mid-cap stocks. While IWM has some serious overhead (i.e., potential sellers) to contend with since its high was made in mid-2015, MDY is in the clear.

Expect new highs in the mid-cap stocks with mild resistance from the small caps. One of the most visual characteristics of a bull market is group rotation, and that has been the most prevalent feature of the July advance.