Chart of the Day - Wednesday, June 7, 2023

Another raging upside day for mid and small caps. pic.twitter.com/aAJo3eJNdk

— Louis Spector (@EastCoastCharts) June 7, 2023

Today’s Chart of the Day was shared by Louis Spector (@EastCoastCharts). The chart shows Large Caps (S&P 500), Mid Caps, and Small Caps over the past two years. While the S&P 500 battles with its August highs, Small/Mid Caps have caught up in a major way. The week isn't over yet, but Small Caps are on track for their best weekly performance vs. Large Caps in more than a year. All three indices are now above their 50-DMA (blue) and 200-DMA (red). The next upside objective for all three will be taking out their respective August/February highs. This recent thrust from Small/Mid Caps is extremely constructive for the broader market, as it alleviates concerns over weak breadth and narrow leadership.