Posted 11/18/2023, 11:25:41 AM
Small Caps Lagging Behind Despite Tuesday Surge; Market Strength In Doubt
- Small caps lagging large caps recently despite strong Tuesday gain, raising questions about market's true bullishness
- Inflation and bond yields declining, increasing odds of Fed ending rate hikes soon
- Fed unlikely to hike more, forecast to start cutting rates in spring 2024
- Market should stay bullish, but small caps need to start outperforming again as indicator of health
- Investors should look for Russell 2000 to break above 200-day moving average as sign of broader market strength