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Are lagging Mid-Caps about to send a bullish message to the broad markets? Looks like we will find out soon.

The S&P 500 is over 9% above the highs of last September. The same can not be said for Mid-Caps!

This chart looks at the Mid-Cap ETF (MDY) over the past 10-years. MDY has spent the majority of the past 7-years inside of rising channel (1).

MDY peaked last September at (2), and then it quickly declined nearly 20%, taking it down to test the bottom of this bullish rising channel.

The rally over the past year has MDY testing its all-time highs again at (3), which reflects its underperformed the S&P by 9% since September of last year.

Lagging Mid-Caps are testing a key breakout level this week.

What they do at (3), most likely will send an important message to Large, Mid and Small caps stocks.