Today’s Chart of the Day was shared by Shane Murphy (@murphycharts). It's a ratio chart of Small-Caps vs. Large-Caps over the past three years ($RUT/$SPX). Small-Caps have held up relatively well recently. In fact, the Russell 2000 was the only major index that respected its June lows throughout the recent sell-off. Shane points out that this ratio is currently at a seven-month high, in favor of Small-Caps. As we know, Small-Caps often lead the broader market higher or lower, so this is an encouraging development for the bulls. To be fair, the index is still down more than 28% from its peak nearly a year ago, so there's plenty of damage to repair, but this is a start.
Chart of the Day - Tuesday, October 18th, 2022
October 18, 2022
