How Day Traders Trade the Small-Cap Catch-Up Setup

The Day Trading Podcast with Fexingo: Active Trading, Charts, and Short-Term Market Strategy · Jul 3, 2026 · 8m · transcript

Episode 88 of The Day Trading Podcast with Fexingo: Active Trading, Charts, and Short-Term Market Strategy. As of July 3, 2026, the S&P 500 sits at 7,483, the Nasdaq at 25,833, and the Russell 2000 is lagging at 2,996 — down 0.5% over the past week while large caps surged. Lucas and Luna break down the small-cap catch-up setup: why the Russell has been left behind despite a VIX carve to 15.92, how traders can spot a rotation into value and small caps, and specific technical entry conditions on the IWM. They discuss the role of the mid-cap IWM-IVV spread, relative strength divergence, and the…