I’m seeing the same type of pattern being painted between traders and investors as I did in late August where traders had bought the bounce in small caps (IWM), but investors (RUT) didn’t. You can read that post for details on the pattern.
The short story is traders are buying small caps and investors aren’t. Traders aren’t aggressively buying the S&P 500 Index (SPY) and investors (SPX) are still negative on the index. Keep an eye on the strength scores between IWM and RUT and also SPY vs SPX to see if traders start to sell or investors start to buy. It’ll give you clues to the next direction of the market.