If a more favorable trading environment is upon us, then speculative areas like small-cap growth should be participating in the upside.

Just look at the monthly chart of the IWO small-cap growth ETF below.

During the “easy” trading environments in years like 2013, 2017, and 2020, smalls are in a clear uptrend.

IWO is attempting to rally off support from the past year’s low, but more work is needed to signal a new uptrend.