$IWM $RTY $RLV if you like the relative strength breakout in small caps, note the strong correlative this ratio has to the Russell 1K (large cap) Value / Growth ratio (RLV / RLG). Value outperformed Growth for straight 6yrs starting in 2000. #Value pic.twitter.com/vFNcAfRNKX
— brian.joyce.nasdaq (@Nasdaqbjoyce) October 27, 2022
Today’s Chart of the Day was shared by Brian Joyce (@Nasdaqbjoyce). The chart shows two ratios; the Russell 2000 vs. the S&P 500 (top), and Value vs. Growth (bottom). The Russell 2000 broke out to a fresh year-to-date high vs. the S&P 500 today. Brian points out that these two ratios are highly correlated. Therefore, if the Russell 2000 continues to outperform the S&P 500, Value will likely continue to outperform Growth.