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Patrick Dunuwila

Smalls Squeeze πŸ“ˆ The Daily Chart Report

August 12, 2025

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Today’s Summary

Tuesday, August 12, 2025

 

Indices: Russell 2000 +2.99% | Nasdaq +1.33% | S&P 500 +1.13% | Dow +1.10%

Sectors: All 11 sectors closed higher. Communications led, gaining +1.91%. Real Estate lagged, but still rose +0.17%.

Commodities: Crude Oil fell -1.24% to $63.17 per barrel. Gold inched lower by -0.17% to $3,399 per oz.

Currencies: The US Dollar Index dropped by -0.45% to $98.05.

Crypto: Bitcoin is on track for a record closing high, currently up +1.11% at $120,075. Ethereum is up +8.30% at a multi-year high of $4,575.

Volatility: The Volatility Index dropped -9.24% to 14.74, its lowest close of the year.

Interest Rates: The US 10-year Treasury rose to 4.289%. 
 


Here are the best charts, articles, and ideas shared on the web today!
 


Chart of the Day 


πŸ† Today's Chart of the Day was shared by Mike Zaccardi (@MikeZaccardi).
 

  • The Russell 2000 ($IWM) had its third-best session of the year today, rising +3.0%.
 
  • It outpaced the S&P 500 ($SPY) by +1.9%, marking the best day for Small-Caps versus Large-Caps since November 6th, the day after the election.
 
  • $IWM/$SPY remains in a clear downtrend, but it wouldn't take much to reverse it. Large speculators are still heavily short Russell 2000 futures, leaving ample runway for the recent outperformance to continue.
     
The Takeaway: Today was the best day for Small Caps vs. Large Caps since the election. The ratio is still trending lower, but with the recent momentum and plenty of shorts to squeeze, Small-Caps have all the ingredients for a juicy move in the near term.



Quote of the Day


β€œBig moves start with big moves."

- Steve Strazza


Top Links
 

Large-Cap Left Behinds - Bespoke
Bespoke looks at the large-cap stocks that have missed the rally.  

SPX, CPI, & Bonds - Cappnotes 
Frank Cappelleri breaks down the recent price action and patterns in the S&P 500. 

Breadth Hits Neutral β€” Market at Crossroads βš–οΈ - The Daily Number
Grant Hawkridge looks at the latest breadth numbers. 

Technical Tuesdays πŸ“ˆ  with The Chart Report! - X
Here's the recording of today's conversation on Twitter Spaces. We discussed the outlook for Small Caps, Crypto, and more.


Top Tweets


 

You're all caught up now. Thanks for reading!

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