The past few days saw the Dow fall while the Russell 2000 rose. It has been an interesting situation leading up to Thursday because if all the major indexes were to rally, then the Russell 2000 would be massively overbought.

The new home permits, starts, and completions were all strong in May, but the existing home sales have been flat at best this year.

As an investor, I love political gridlock. I would rather the risk of political actions be known. When the Congress is split or when one party fully controls Congress and the President is of the other party, not many major laws get passed.

The trend of small caps outperforming large caps continued again as investors worry about the rising dollar and the trade skirmishes.

Capital continues to flow into the monsters of tech and disproportionately weighting the index products. What does this mean for the overall market?

Tuesday was a continuation of the recent stock market trend which has seen largest caps underperform small caps.