Small caps have already gone down the drain in terms of technical analysis. It remains to be seen whether they will be able to recover in time to avoid confirming the loss of the LTA that had been in place since the Covid low in March 2020. This line was broken with this week's candle, although, for now, this only appears to be a closing price.

A recovery seems unlikely, especially given the recession scenario that is taking shape — something that greatly impacts small caps.