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Everyone's obsessing over tomorrow's Fed rate cut.

Meanwhile, Gianni spotted something far more important happening in plain sight.

The Russell 2000 closed at a new record high last week. Today it hit a new intraday all-time high. Most traders completely missed it.

This matters because small caps are now setting up to outperform large caps over the next one to two months. The index sits just a few percentage points above its 2021 peak, making valuation concerns about "bubbles" look overblown.

Here's what Gianni sees developing beneath the surface:

• Regional banks forming a massive cup and handle pattern on the daily chart
• KRE testing resistance at $63-70, a level that goes back to 2023
• If that breaks, it opens the pathway to new all-time highs in the banking sector
• Financials make up 18-19% of the Russell 2000

The Fed's rate cut tomorrow could be the catalyst that breaks regional banks out of their multi-year consolidation. Gianni thinks the banking system troubles of the past couple years are over.

But it's not just financials. Gianni's tracking three major sectors within the Russell 2000 building massive bases near all-time highs:

• Industrials (robotics and AI manufacturing impact)
• Healthcare (biotech already performing strongly)
• Technology (semiconductors hit new all-time highs yesterday)

The Philadelphia Semiconductor Index made a new all-time high yesterday. That's a leading indicator for the broader market. Meanwhile, XLK could close its 12th consecutive day higher today. Historical forward returns after streaks like this show high double-digit gains.

Gianni's also watching the crypto space heat up. Ethereum rallied 7.5% today, outperforming Bitcoin. If Ethereum takes out its November 10th high before Bitcoin does, it signals Ethereum is the future of Wall Street's trading infrastructure.

The rotation is happening now. Most traders are still fixated on tomorrow's Fed announcement while institutional money quietly positions for the next leg higher in small caps.

Video Length: 00:09:23

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