Is the market crashing?

The SPY and IWM have completely diverged.

On the back of rate cut expectations, many investors are piling back into the junk and high beta names.

A clear relative strength move has occurred in small caps: IWM

Whilst the megacap stocks have been sold off.

The SPY sliced through the 50 MA yesterday and cofirmed the break below.

Although this is typically bearish, we are getting into an area of oversold support.

If the SPY gaps down tomorrow, I think traders will be buying the dip with both hands.

The IWM has blasted above the 50MA, basically moving the exact opposite of the S&P500.

The question remains....are small caps going to hold their gains inside of the weekly topping tail?