Decade of Pain, But Will Small Caps Bite Back?

Russell technicals

Russell continues trading inside the perfect trend channel. Note we are approaching big resistance levels soon. A close above that area, and partly "forgotten" small caps could be in for a proper squeeze.

Source: LSEG Workspace

 

Relative Russell

Let's see if the rotation gains some more momentum... The Russell/SPX ratio is at big levels here. A close above the trendlines, and things could get much more dynamic.

Source: LSEG Workspace

 

Long term sucker

Small vs large stocks annualizing -4% return past 10 years, but will this ever reverse?

Source: BofA

 

They want small

"Rolling 4-wk avg. equity (stock+ETF) flows flip positive for the 2nd straight week."

Source: LSEG Workspace

 

Small over big

The outperformance by small caps vs NDX has been huge lately.

Source: BofA

 

Cheap uspide

Relatively flat skew in small caps offers attractive options plays if you need to chase this space.

Source: LSEG Workspace