While large-cap companies including Uber and Lyft have been in the spotlight in recent months, many companies are still at the small- and mid-cap phase when going public. Technicals suggest mid-cap stocks could remain out of favor for some time, as highlighted in All Star Charts Institutional’s Top 10 Charts of the Week.
“Mid-Caps are resolving lower from an 8-year topping pattern relative to the S&P 1500. After rallying to new all-time highs following the 2016 US election, mid-caps have been in a steady downtrend relative to their large-cap peers,” All Star Charts Institutional wrote in its most recent Top 10 note. “We want to be shifting capital away from mid-caps as long as this ratio is below the recent support that was breached ~0.53. After nearly a decade of sideways action, this appears to be the beginning of a structural downtrend, so we can expect mid-cap underperformance to continue for multiple years.”
Read the full Top 10 Charts of the Week here. For information about how to subscribe and receive the charts Wednesday, contact All Start Charts Institutional Sales.
