IWM/SPX spread - Long smallcapsBeen watching for a reversal of the trend between the 2 indexes and a breakout of this bullish falling wedge for a while.
Fundamentally it made sense to look for this breakout result because of the looming interest rate cuts and frothy bond yields since the start of the year. Small caps are highly sensitive to such things.
Long IWM or TNA is the play on this breakout. But the best value will be found in heavily beaten down individual small caps.
If you want to hedge against a market correction long small caps short large would be the other play.