In this Episode of Allstarcharts Weekly, Steve and I talk about how important it is for Transports, Small-caps and Micro-caps to hold above their August lows. This is a major risk barometer for sure. The Dow Jones Transportation Avg held its early June lows and so did the Russell2000 Small-caps. As long as that remains the case, we believe the path of least resistance is higher for US equities. As a confirmation, we're looking for Micro-caps to get back above their early summer lows. This period reminds us a lot of what we saw in 2016 right before a historic rally in Stocks around the world!

In this Episode of Allstarcharts Weekly, Steve and I talk the relative performance of stocks. When assets are in strong uptrends, they not only perform on an absolute basis, but they tend to outperform their alternatives. With new highs in the S&P500 last month, we've seen nothing but lower highs relative to both Gold and US Treasury Bonds. In fact, on a relative basis, the S&P500 is actually down to its late December 2018 lows. Will they hold or confirm a massive distributive top? I think the resolution will tell us a lot about the strength of the current stock market.

In this Episode of Allstarcharts Weekly, Steve and I talk about US Small-caps and the underperformance we've seen out of anything non-large-cap since 2018. We are now down to levels not seen since early 2016 when Small-caps started their outperformance vs Large-caps, which is where stocks bottomed after the 2015 cyclical bear market. Is this where the turn begins? Let's walk through it together and see if we can figure it out!