Analysts Hate These Small Caps... but That's Exactly Why They're Good for Fast Gains

With the market taking a pause after rallying more than 5% off the May 3 low, the question every investor has to contend with is: Does the rally have more steam… or is a pullback imminent?

With the 10-year yield above 3% and global trade issues resurfacing, the argument for the latter has merit.

But there's one technical indicator I follow that's flashing a bullish sign; it tells me more upside is likely.

Small-cap leadership is an indication of a healthy market.

I consider it a reliable "risk-on" indicator that reflects investor willingness to buy stocks based on a perceived increase in risk value.

More risk here adds up to more reward...