Below are highlights from the NDW Morning Update Video for the morning of 6/26. Access the the video on the NDW Morning Update Video page. 

• Markets were higher across the board Thursday, with the major exception coming from some of the market's largest companies. Apple (AAPL) fell 6.12% after increasing product prices across the board to keep up with memory prices. Meanwhile, the Roundhill Magnificent Seven ETF (MAGS) fell 2.57%, and is now down 7.4% YTD, which is 24% lower than the Nasdaq-100 (NDX).

• Memory chip companies continue to be some of the hottest companies in the market, with the Roundhill Memory ETF (DRAM) rising another 10% on the day, led by a 15.74% gain from Micron Technologies (MU). 

• The bulls are back in town. Among respondents to the AAII sentiment survey, 45% think the market will move higher over the next six months, compared to 35% who expect it to move lower, which is the most bullish reading in over two months.

• While bonds were relatively subdued on the day, the iShares US Core Bond ETF (AGG) moved to its first buy signal since August, flipping its trend back to positive. That said, fixed income remains unfavored at the bottom of DALI, and AGG holds a fund score of only 0.81. 

• Momentum had another solid day, with iShares MSCI USA Momentum Factor ETF (MTUM) rising 3.32%. MTUM is now up more than 35% YTD, outpacing the S&P 500 (SPX) by 28.1%, which would be the widest margin in favor of momentum stocks on record for a calendar year.

As the end of the second quarter nears, small caps have led U.S. equities through the month of June with the Russell 2000 Index (RUT) gaining over 3% (5/29 – 6/25), rallying to new all-time chart highs at 3,020 during Thursday’s trading session. Prior to rallying to highs Thursday, RUT gave a third buy signal on the default point and figure trend chart to kick off the week at 3,000. Compared to other U.S. equity indices, RUT has outpaced all others by more than 1% and the S&P 500 Index (SPX) by just shy of 6% in June. For the second quarter, RUT is up more than 20% through Thursday’s (6/25) close and lags only the Nasdaq-100 (NDX), up 24%, in terms of Q2 performance.

Signs of small caps’ intermediate-term leadership can be found on the Asset Class Group Scores page, which ranks 134 asset class groups by averaging the fund scores for ETFs and mutual funds within the specified asset group. Looking at the U.S. Styles View of the ACGS rankings reveals the three small cap style groups ranking above their large- and mid-cap counterparts— a position the groups have sustained for the better part of two weeks. As of Thursday’s close, all three small cap groups maintain a score of 4.48 or higher (out of 6), with each residing at their highest levels since early 2021.

The long-term NDW DALI Size and Style Rankings have also begun to see small cap groups climbing up the rankings, with the small cap growth group moving into the fifth position. This marks the first time since 2023 that any small cap group has moved into the top 5 (out of nine) of the long-term RS size and style rankings, and the first time since very early 2022 that small cap growth has ranked within the top 5.

Evaluating both the Asset Class Group Scores page and NDW DALI Size and Style Rankings highlights the positive trend and superior near-term strength shown within the small cap space. From a long-term perspective, while small caps have improved within the rankings, large cap groups have yet to be unseated from their long-term leadership position. Should small caps continue their recent leadership and move up the long-term DALI Size and Style Rankings and usurp large caps, it would mark the first time since 2021.

Examining the Invesco Small Cap sector lineup reveals that seven of the nine small cap sector ETFs are positive in the month of June, eight of the nine are positive in Q2, and all nine are positive on a year-to-date basis.  During the second quarter, technology gained more than 40%, followed by healthcare, which saw a notable surge within the month of June and is now up more than 25% for the quarter. Along with the aforementioned two sectors, six additional small cap sector ETFs have seen double digit gains on a year-to-date basis – the lone exception is consumer discretionary, which is up 9.99% year-to-date (thru 6/25).

Those who may be seeking a solution to small caps exposure could consider the Invesco Small Cap Sector Model (POWERSMALL), which utilizes the nine small cap sector funds and holds the top three ranked sectors based on a relative strength matrix ranking. The model is evaluated weekly and witnessed a trade earlier this week, removing the Invesco S&P Small Cap Energy ETF (PSCE) and adding the Invesco S&P Small Cap Materials ETF (PSCM). In addition to materials exposure, the model has maintained exposure to the Invesco S&P Small Cap Information Technology ETF (PSCT) since November 2025 and the Invesco S&P Small Cap Industrials ETF (PSCI) since February 2023. Year-to-date, the Invesco Small Cap Model has gained over 28%, outperforming its benchmark, the S&P Small Cap 600 Index (SPSML), and the Russell 2000 Index (RUT) by more than 7%.

Featured Charts:

Portfolio View - Major Market ETFs

The option suggestions featured here are pulled from the NDW Options Ideas tool. These are just a sample of the ideas that can be found there. The Options Idea tool contains numerous additional income and speculative plays. It also offers relative strength-based screens targeting the highest (and lowest) relative strength stocks and ETFs that have recently moved counter to their longer-term trend. To access or subscribe to the Options Ideas tool, click here.

Call

Morgan Stanley (MS) September 18 $200 Call

Put

Chipotle Mexican Grill (CMG) September 18 $37.50 Put

Income (Short Put)

Take=Two Interactive Software (TTWO) July 24 $210 Short Put