US Small Cap 2000

This chart keeps reinforcing the same message for me.

Small caps didn’t just break out.

They broke, pulled back, and held.

That’s the part people skip over. Every major cycle move starts with this exact behavior: reclaim → retest → continuation.

As long as small caps stay above that prior resistance, I see this as confirmation that we’re still in a risk-on environment, not late-cycle exhaustion.

This backdrop matters more than any single asset.