Volatility’s Up, Small and Micro Caps Don’t Flinch🔥
By Grant Hawkridge
October 15, 2025
Today's number is... 2
Despite a spike in volatility, two key corners of the equity market are moving together in strength. Small Caps are hitting fresh all-time highs, and Micro Caps are close behind.
Here’s the chart:
Let's break down what the chart shows:
The top panel shows the Russell 2000 ETF (IWM) in blue.
The bottom panel shows the Micro-Cap ETF (IWC) in black.
The Takeaway: Volatility has picked up, but small and micro caps are showing real strength.
Small Caps have already cleared resistance and broken to new highs. Micro Caps are less than 1% away.
That resilience tells the story. Even as markets swing, buyers continue to step into the most aggressive parts of the equity landscape. Risk appetite is holding, not fading.
After nearly four years of failed attempts, both groups are finally breaking free from massive bases.
Long consolidations like these store energy. When they resolve higher, the move that follows is often powerful.
If Micro Caps confirm next, it would signal that strength is spreading into the deepest corners of the market.
Are traders underestimating just how big this breakout could become?
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