Summary
The stock market rallied again on Wednesday and, for a second straight day, small-caps led, mid-caps followed, and mega-caps lagged. Is this a developing trend? Possibly, but it is far too early to make that call. Every attempt by small-caps to take over leadership from the giants since August 2018 has failed miserably and thrown mud in the face of those (including us a time or two) calling for a rebirth of the little guys. There was one time when the small-caps led, and that was late 2020 until early 2021 when the stock market was still trying to recover from the pandemic. As such, that period is easy to dismiss. The S&P 500 added 0.3% on Wednesday; the S&P 100, Nasdaq, and Nasdaq 100 were flat; the S&P Small Cap 600 (SML) popped 2.1%; and the S&P Mid Cap 400 rose 1.6%. Over the past two days, the SML has jumped an impressive 5.4%, the largest two-day sprint since stocks were coming out of the April bottom. The daily Vortex Indicator has given a buy signal, the CTM Trend Meter is showing nice strength (the highest reading since December 2024), the 21-day rate-of-change (ROC) is positive, the daily moving-average convergence/divergence (MACD) has turned higher, and the 14-day relative strength index (RSI) ha
