With the election behind us, markets seem ready for a year-end rally.
The S&P Small-Cap 600 Index led the way, climbing 6% as it registered its best daily performance since 2020.
As you can see, IJR jumped above its prior cycle highs from 2021, appearing, at least for now, to complete a massive base.
I’m looking for some follow-through in the days and weeks ahead to confirm this breakout.
If we get it, this could be a breakaway gap for the history books. Based on the way it started today, odds favor it being a valid resolution.
If it holds, I think we’re likely to see a rotation into the riskiest areas like banks, biotech, and crypto, as investors embrace higher-beta opportunities.
JC will be discussing the impressive price action on crypto Friday noon ET. If you are interested in participating, click here to reserve your spot.
