Watching the $RUT / $SPX ratio closely. No confirmation yet, but there's a potential super rare Ladder Bottom Formation setting up here. This is a multi-year setup—we'll know more by 2027.
If it plays out, it would mark a major regime shift favoring small caps over mega-cap tech. Right now, the ratio sits near historic lows, reflecting years of large-cap dominance. A confirmed reversal would signal rotation into riskier, domestically focused names—classic late-cycle or post-reset behavior.
For now, it's a watch item. But if small caps start outperforming sustainably, it changes the entire market playbook. Worth tracking closely.
If it plays out, it would mark a major regime shift favoring small caps over mega-cap tech. Right now, the ratio sits near historic lows, reflecting years of large-cap dominance. A confirmed reversal would signal rotation into riskier, domestically focused names—classic late-cycle or post-reset behavior.
For now, it's a watch item. But if small caps start outperforming sustainably, it changes the entire market playbook. Worth tracking closely.