Spread: Small Caps vs Large Caps (USA)

Profile: Dow Jones US Small caps versus Dow Jones US Large caps.

Note: relative performance of Y versus “Z”. A rising chart means “Y” is outperforming “Z”. The spread says nothing about the absolute performance of either “Y” or “Z”.


Large cap outperformance versus the small caps has faded. Even though the trend line of early 2014 remains intact, the setting of lower peaks suggests the market has turned to neutral at best. A more significant trend reversal lower is possible, but as things stand now, there are not enough signals to actively trade on such an assumption.

Neutral and choppy for the time being…

  • Outlook: Neutral, no clear bias for either Large or Small caps
  • Strategy: equal weight, no bias

Spread: DJ-US Small Caps vs DJ-US Large Caps Index (USA). Ratio 1:1