We continue to see small caps stuck deep in the red, while large caps remain firmly in the green.

This isn’t surprising — it’s part of a well-established secular trend — but it’s worth highlighting again.

Small Caps ($IWM) look terrible, and there's little hope for a turnaround anytime soon. Just look at how brutally the small-cap ratio has been crushed.

Even with money flowing out of growth stocks — the very names that drive the large-cap indexes — small caps are still breaking to new lows.

If they couldn’t outperform when tech was getting hit, what are the odds they’ll ever outperform?

It's a bleak outlook for America's small stocks.

The S&P 500 keeps falling in our power rankings as global markets have shown resiliency.

The longer-term picture for international is becoming more apparent; favorable valuations, diversification away from growth, and momentum that's capturing the attention of traders.

In 2025, international has smoked the U.S. The ratio below tracks Vanguard's All World Ex US ETF $VEU relative to the U.S. - when it's moving higher it shows that international is outperforming.

There is an argument to be made that this trend is extended in the near-term and we could see a temporary rotation back into U.S. growth as markets find their footing following the tariff fiasco.

But the bigger picture is that evidence is mounting we're in the early stages of a reversal in U.S. dominance that's been present for the last 15 years.

Shall we expect more red from the U.S. moving forward in our rankings?

We think it'd be wise to start thinking seriously about this outcome.

We’re seeing an increase in risk-on behavior as markets begin to stabilize from the recent correction. This shift is especially evident on the international stage. And while the U.S. has been more of a laggard in comparison, there are still compelling opportunities emerging.

Gold miners, for example, continue to show relative strength — as confirmed by the latest power rankings.

At the same time, certain pockets of growth that were hit hardest are showing signs of life. Cybersecurity ($HACK), for instance, has successfully retested its 2021 highs — much like the major U.S. indices — and is beginning to set up constructively.

This signals a broader transition from risk aversion to opportunity-seeking. As more corners of the market find their footing, we expect leadership to broaden.

Risk-on themes continue to rank high on our power rankings, with funds like China Technology ($CQQQ), Momentum ($MTUM), and Robotics ($ARKQ) all showing notable relative strength.

But the standout performer remains the VanEck Video Gaming ETF ($ESPO), which has held the top spot for some time now.

Just look at the consistency—this fund has been delivering strong performance week after week.

A closer look at its components reveals some incredibly strong charts that are driving this impressive trend.

Consumer Staples $XLP has found its way to the top of our sector list, with Utilities $XLU right behind. This type of action is standard when stock prices are falling, because these groups are the least volatile sectors.

As such, we would like to see these sectors stop outperforming for stock prices to start going higher again.

But as it looks right now, XLP just completed a massive breakout relative to the S&P 500. This is not good news.

If you're positioned for stock prices to go higher, in all likelihood, you need to see this ratio fail to hold this breakout and begin working lower again.

U.S. markets opened on a muted note following the long weekend.

Several major indices have slipped below their AVWAP anchored to the recent lows, suggesting a potential retest of those lows may be underway.

Momentum has faded since the brief post-tariff rally sparked by Trump’s announcement, but key support levels remain intact.

Notably, the U.S. indices found a floor at their 2021 highs—a level that continues to act as strong support. If that level breaks, we’ll reassess and adjust our positioning accordingly.

For now, though, it looks like we're entering a period of sideways chop.

Markets are starting to find their footing after a turbulent stretch.

While the recent bounce in U.S. equities has lacked conviction—leaving some investors uneasy—the global picture tells a different story. Many international markets are showing strong signs of risk appetite, with impressive rebounds underway.

Take Greece, for example. $GREK has already clawed back most of its recent losses, staging a notable recovery.

This kind of bullish follow-through isn’t isolated. We're seeing similar strength across Europe, Latin America, and Oceania.

So while U.S. markets may be hesitating, globally the tone is far more constructive.

As markets digest the recent crash, we'll be watching closely to understand the next leadership groups if and when we another bullish rally.

It's hard to dismiss the strength out of China - in the bull market prior and even throughout this volatility. The iShares Large-Cap China ETF $FXI is still putting in a series of higher highs and higher lows.

While there's understandably a lot of concern regarding China, many Chinese equities are still in strong uptrends.

And the longer you zoom out - this is an uptrend that may only just be getting started.

Last week, we pointed out how Consumer Staples – a classic defensive sector – had surged in response to the market selloff. That’s typical behavior during periods of volatility, and we noted that it would actually be a constructive sign if that strength didn’t hold.

Well… it didn’t.

With that behind us, the question shifts from will we bounce? to how far can this bounce go?

One sector we're watching closely for clues is Financials ($XLF). It broke down hard – and now it's coming back to retest all that broken support.

This is a crucial moment.

Historically, after sharp corrections like the one we just saw, markets tend to move sideways for months. They need time to digest the move.

If we’re going to ignore that playbook and rip straight back to all-time highs, it would be… unusual.

More likely? We’re at a logical level for sellers to step in, put a lid on this rally in financials, and drag us into that choppy, frustrating range we’ve come to expect after major market resets.

The Dow Jones Industrial Average $DIA has migrated to the top of the list in the aftermath of the recent market crash.

The Dow, like so many other key indexes, have held the retest of their 2021 highs.

This suggests a strong level of support, indicating that the worst of the correction is likely behind us. While the market often consolidates or moves sideways after such events, this appears to be a constructive bottom - one we can build on with cautious optimism.

The prevailing theme on the international front has been the rotation taking place out of the United States and into a wider set of global markets.

We've seen significantly elevated volatility, and there's now a strong case to be made that the worse is behind us. Many key U.S. indexes have retested their 2021 highs and have firmly held.

Now the question has become - will international still outperform if risk markets recover from here?

A key chart to watch on this front is Europe $VGK versus the United States $VOO.

When this black line is going up, it means that Europe is outperforming the U.S. (as has been the case for a few months).

Right now, the ratio is at a key inflection point. If we see this ratio take out its most recent lows, it would indicate that money is rotating back into the United States.

The ratio will be a key chart to watch when understanding the leadership of the next bullish phase.

While global markets have experienced heightened volatility in recent weeks, precious metals have remained a notable area of strength.

The VanEck Gold Miners ETF ($GDX) has just broken out of a major base and is now trading at its highest levels in over 12 years.

If equity markets continue to stabilize, this resilient group could remain a key area of leadership.

As long as $GDX holds above 45, the path of least resistance remains higher.