Small-cap stocks have reached a potential critical moment. In 2021, the Russell 2000 went sideways, had a false breakout toward the end of the year, then plummeted into the 2022 bear market. In 2023, small-cap stocks went sideways for the bulk of the year. Now, they seem to be following a similar pattern where they had a false breakout and are being rejected again. The Russell 2000 index, a benchmark for small-cap stocks, has been a barometer of just how deceptive this “new bull market” has been. Small-Cap Stocks Are Already Struggling in 2024 Despite occasional rallies, the index has struggled to sustain its momentum, faltering…
