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Market Trends | Stocks
Fed Triggers Potential Small Cap Breakout
David Russell
December 11, 2025

Downloads are available here. TradeStation’s ideas on TradingView are available here.

Sizing Up the Market

  • S&P 500 clears resistance at 6,852 from 10/29 intraday low
    • Closes at highest level since late October
  • Bullish outside day spans 4 previous sessions
  • Rate of change stays positive, creating potential for acceleration
  • MACD rising
  • RSI bottoms above 50
  • Intermarket analysis:
    • 10-year Treasury yield stalled below 4.20%
    • U.S. dollar index closes at lowest level since late October
    • VIX remains below 18

S&P 500, daily chart, with select patterns and indicators.

Small Cap Breakout?

  • Russell 2000 small cap index closes at all-time high as other indexes remain below peaks
  • KBW Bank Index closes at new all-time high
  • Industrials Index has new all-time closing high

Upcoming Events

    • Earnings tonight: *AVGO* COST LULU RH
    • Tue 12/16: *Non-farm payrolls*, housing starts
    • Wed 12/17: Retail sales, crude-oil inventories
      • Earnings: MU JBL
    • Thu 12/18: ECB rate decision, *CPI*
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About the author

David Russell
David Russell is Global Head of Market Strategy at TradeStation. Drawing on more than two decades of experience as a financial journalist and analyst, his background includes equities, emerging markets, fixed-income and derivatives. He previously worked at Bloomberg News, CNBC and E*TRADE Financial. Russell systematically reviews countless global financial headlines and indicators in search of broad tradable trends that present opportunities repeatedly over time. Customers can expect him to keep them apprised of sector leadership, relative strength and the big stories – especially those overlooked by other commentators. He’s also a big fan of generating leverage with options to limit capital at risk.

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