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Small cap stocks could benefit from rotation in August, says technical analyst

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Key Points
  • Technical analyst Jonathan Krinsky sees small caps as one potential beneficiary if there is a sell-off in large cap tech in August. 
  • "There's a lot of actually technology and high-beta names in there that I think can work," the chief market technician at Bay Crest Partners said on "Halftime Report."
  • The iShares Russell 2000 ETF, which tracks that small-cap index, is down nearly 10% so far in 2020.
A trader works on the floor of the New York Stock Exchange.
Michael Nagle | Bloomberg | Getty Images

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A rotation this month out of the large tech names that have been market standouts could benefit small-cap stocks, technical analyst Jonathan Krinsky told CNBC on Monday.

"They've gone nowhere for two weeks. They've gone nowhere, really, for two years, and there's a lot of actually technology and high-beta names in there that I think can work," the chief market technician at Bay Crest Partners said on "Halftime Report." "I think small caps are an obvious rotation beneficiary as we push into August." 

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