Value has taken the lead over Growth as year comes to a close

Technical trends for US Equities are bullish, but the large-cap Technology sector has continued to weigh down SPX and QQQ, and should be nearly complete.  Given this past week’s breakouts in IWM, MDY, RSP, and IYT, I’m favoring that this recent choppiness should give way to some late-year strength and push higher into mid-to-late January. Both Small-Cap IWM and Equal-weighted S&P 500 have made breakouts vs. SPX in the last two weeks, and this seems to favor Small and mid-Caps, which likely can show some outperformance heading into next year. Overall, my expectation is that Equities can likely push back to new highs, but that Small and mid-cap exposure should be favored for now until stocks like NVDA can successfully bottom out and begin turning back higher.

I’ll keep lengthy comments to a minimum ahead of Monday’s 12/15 2026 Annual Outlook, which will occur at 11 am EST for Institutions and then again at 2 pm EST for Retail investors.

However, for now, it’s fair to say that markets continue to show minor headwinds from the underperformance of Tech giants like $NVDA, which was joined by $AVGO in weakening on Friday.

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