A Bullish Pattern Resolution

Thanks to everyone who joined us for today's Hot Corner Insider Weekly Strategy Session.

Here are the top three takeaways from the call:

• Small-caps hold the line

The S&P Small Cap 600 Index $IJR pulled back to test former resistance, which is now acting as support.

Buyers stepped in to defend this critical level, leaving the post-election gap partially filled:

As long as prices hold above the prior cycle highs, this is a bullish pattern resolution.

• Big-cap tech losing leadership?

The summer sell-off looks like the initiation of a new downtrend for the XLK/SPY ratio.

This is happening exactly where the ratio peaked during the dot-com bubble.

The current market playbook has shifted: smaller, more speculative stocks are stepping up as the new leaders while the large-cap giants take a well-deserved break.

• Digital payments stocks are on fire

Digital payments stocks are offering an asymmetric risk vs reward setups these days.

We wrote about Block $SQ and Affirm Holdings $AFRM in our latest Screamin' Hot reports.

Another name that catches our attention is Shift4 Payments $FOUR:

The stock is pressing against the top of a multi-year basing formation as buyers absorb all the overhead supply at this resistance zone.