Are the Small Caps About to Breakout?

Friday's session saw key breakouts among several of the major indexes, including the Dow and the NASDAQ with the NASDAQ marking new 11-year highs.

But one key index, the S&P 600 Index, which tracks the small caps, has yet to re-take its 52-week high.

Crushed down in last summer's sell-off, the small caps lagged last fall as investors rushed into the safety of large cap dividend paying stocks.

However, recently, investors have returned to riskier assets with a vengeance. In the hot month of January, the Russell 2000, a wide small cap index, gained 7.1% compared with the S&P 500's return of 4.5%.

Is a small cap breakout coming?

And if there is one, will it push the overall markets to new multi-year highs?

Check out the incredible run off the March 2009 lows for the S&P Small Cap 600 Index.

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