BTIG recommends investors to closely follow the trading of small-cap ETFs to evaluate whether the recent strong performance of the market is sustainable. It was reported by the Intelligence Finance APP that after a period of growth stagnation, the Russell 2000 Small Cap Index rose 1% on Tuesday, and the iShares Russell 2000 ETF also rose 1.1%, achieving consecutive growth for the second week. Strong performance this month brought the index and ETF's year-to-date increase to about 11%, which has somewhat narrowed the gap with the stronger-performing S&P 500 Index and the Nasdaq Composite Index.

BTIG's Chief Market Technician Analyst, Jonathan Krinsky, stated in a report on Monday:"We continue to believe the iShares Russell 2000 ETF must remain above $210, a recent breakout level, to ensure longs maintain control in the intermediate term." This ETF is managed by BlackRock and has an asset management scale of up to $69.99 billion.

In mid-July, iShares Russell 2000 ETF rose 10% within five trading days, due to a cooling off of inflation expectations in June, which reignited market expectations for multiple interest rate cuts this year, boosting small-cap stocks and possibly helping some small companies reduce their debt pressure. Meanwhile, large-cap technology stocks that pushed the S&P 500 Index up 16% this year have fallen.

However, Krinsky warns that compared to the S&P 500 Index, iShares Russell 2000 ETF has "consistently been in a downward trend for the past 18 months." He stressed that, "It is still too early to claim that small-cap stocks will continue to lead the market."

On Tuesday, the iShares Russell 2000 ETF closed at $222.63, the first time it has closed above $210 since the rebound in mid-July, showing that small-cap stocks may be gaining more attention and confidence from investors.