Small-cap stocks have underperformed large-cap stocks by a significant degree over the past 5-years. This weakness since the highs in 2015, has the Russell/S&P ratio hitting the lowest level in the past 15-years at (1), earlier this year.
The rally off long-term support is now attempting to break above dual resistance at (2), as momentum is the most oversold in 20-years!
If the ratio succeeds in breaking above long-term resistance at (2), look for small caps to outperform large caps stocks for a good period of time!
