Chart of the Day - Thursday, October 8th, 2020

Today’s Chart of the Day was shared on Twitter by Chris Verrone of Strategas Research (@verrone_chris). Small-Caps have shown some notable signs of improvement over the past two weeks. The Small-Cap Russell 2000 index has outperformed the Dow, S&P, and Nasdaq for six straight days now. It's not every day that you see the Russell up more than 12% in just 10-days like this. While some might view this as an overbought signal, Chris explains that these momentum spikes have historically led to further gains for the Russell 2000. Small-Caps tend to be risker and more aggressive than their Large-Cap peers. So, the fact that they've begun to outperform recently is a testament to healthy risk appetite among market participants right now. It's hard to view this development as anything but bullish for the broader market.