While we focus on small-caps, our process lends insight across markets. Today, we identify how our sector rotation map defines the large-cap universe and where sector positioning jibes with or deviates from small. Tech, Industrials and Health Care appear strong in both large and small-caps while Staples and Real Estate are common laggards. The largest sector divergences occur in Comm Services (where large-caps are much stronger) and Materials (where small-caps have been stronger but with a potential rotational shift underway as small-cap Materials are losing momentum while large-cap Materials are gaining). Small-caps are incrementally stronger in Health Care (aided by a greater Biotech weight), Energy, Real Estate and Financials. Large-caps hold an edge in Industrials, Tech and Utilities. Both small- and large-cap Consumer sectors are notable laggards with large-cap Staples a little better
than their small-cap counterparts and vice versa for Consumer Discretionary.