Chart of the Day - Monday, April 19th, 2021

Today’s Chart of the Day was shared by Andrew Thrasher (@AndrewThrasher). From left to right we have; Large-Caps ($SPX), Mid-Caps ($MID), Small-Caps ($SML), and Micro-Caps ($IWC). Andrew highlights a potentially bearish divergence that's worth keeping an eye on. Large/Mid-Cap indices reached all-time highs last week, while Small/Micro-Cap stocks failed to follow suit. As you might know, Small/Micro-Caps are often used to gauge risk appetite within the broader stock market. Their stellar outperformance over the past year has been a bullish sign of risk appetite. But this failure to reach new highs doesn't exactly exude confidence. The primary trend is still unequivocally higher, but bulls want to see Small/Micro-Caps confirming new highs along with their Large-Cap peers, rather than diverging like they are now.