Looking at this week's sector table, surprisingly, Small Cap Industrials $PSCI have found their way to the top!
Additionally, Small Cap Consumer Discretionary $PSCD has completed a red-to-green trend reversal.
Zooming in on the small-cap sector ETFs, we're beginning to see dots of green appear.
Interestingly, the ratio of the Russell 2000 $IWM (which tracks small-cap stocks) has broken to new highs relative to large caps.
The second-largest sector by weighting in the Russell 2000 Small Cap ETF $IWM is Industrials, at 18%. As the strongest small-cap sector right now, it will give us insight into the next move in this space.
$PSCI is currently pressing against its former highs—a big level of potential resistance.
The TL;DR here is that, for the first time this year, we're seeing glimpses of life in the small-cap space.
Given its poor track record in recent times, we're skeptical it can build a sustained bout of outperformance—but nevertheless, it's worth monitoring.
