1/26/2026
By Charles Payne, CEO & Principal Analyst

Strength Begets Strength

A trend I like a lot is the direction of new highs versus new lows. Last November, there were several sessions with more 52-week lows than highs, and even though there was improvement in December, the ratio shifted negatively coming into this year.

In 2024, it wasn’t uncommon to see a 400-point differential between highs and lows. That year, the market felt like it was on ‘Easy Street.’

Small-caps and value continue to outpace.

Drilling Down on Small-Caps

When looking at various styles, small-cap value has dominated this year. The largest sectors within this niche are Industrials (XLI), Financials (XLF), and Consumer Discretionary (XLY).

It's been an incredible story, with implications for Health Care (XLV) and the direction of the overall economy.

Small-Cap Value ETF (VBR) is on the verge of a significant breakout reversal against the S&P 500 (SPY), which hints at a huge upside potential from here.

To read the full report, contact your account representative or email Info@wstreet.com.

Charles Payne
Wall Street Strategies

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