Alright pay attention up — small caps are lastly transferring, and that is the actual inform. Whereas everybody’s nonetheless glued to mega-caps like they’re the one sport on the town, liquidity has quietly began flowing again into the locations that truly reveal the place the following leg is headed.
Breadth is increasing.
Threat urge for food is popping.
Dips are getting purchased immediately — not by retail, however by actual cash.
You don’t get small-cap energy until liquidity is enhancing. That’s the entire story. Credit score seems cleaner. USD is softening. Volatility is fading. These are all early-cycle indicators, and small caps are reacting precisely as they need to: with torque.
That is the primary part of rotation — delicate to most, apparent to anybody watching the underbelly. When liquidity rises, small caps lead. Not finally. Instantly.
Don’t ignore this.