The shift in relative strength between IWM and SPY after four years of large-cap dominance is exactly the kind of regime change that tends to surprise most retail traders. What's compelling here isn't just the breakout itself but the timing, coming as it does when tech's been consolidating and the dollar's testing resistance. I've seen too many traders chase small-cap breakouts without respecting that IWM's 8-day MA still needs to catch up, which typically means some digestion before continuation. The risk-reward setup right now depends entirely on whether price can hold above that breakout zone on any pullback. This feels more like early innings of a rotation than a one day pop, but patience is gonna be key as structure develops.
Clarity of perspective, delivered with matching literacy. Thank you
Nice
These are great! Thanks Andy!
The shift in relative strength between IWM and SPY after four years of large-cap dominance is exactly the kind of regime change that tends to surprise most retail traders. What's compelling here isn't just the breakout itself but the timing, coming as it does when tech's been consolidating and the dollar's testing resistance. I've seen too many traders chase small-cap breakouts without respecting that IWM's 8-day MA still needs to catch up, which typically means some digestion before continuation. The risk-reward setup right now depends entirely on whether price can hold above that breakout zone on any pullback. This feels more like early innings of a rotation than a one day pop, but patience is gonna be key as structure develops.