Embracing investors with a display of strength, the Russell 2000 surprised many in the trading sphere as it surged during the previous session, extending the positive momentum from the week before. The index is hinting at the formation of a right-hand-side base, with technical indicators painting a picture of optimism, suggesting the possibility of an outperformance against the broader market.

Meanwhile, the S&P 500 and Nasdaq kicked off the trading day with upward price gaps. However, their inability to capitalize on these initial gains raises concern. Despite maintaining overall positive technical outlooks, the S&P 500 is currently lagging behind the Nasdaq. A doji candlestick formation yesterday hints at a potential reversal, and a weak pre-market session today could solidify this change in sentiment.

Similarly, the Nasdaq is grappling with a doji candlestick pattern that failed to breach last Thursday’s high, rendering it susceptible to a reversal in the current trading session. A weak pre-market performance may pave the way for a challenging day. Notably, surpassing the 18,670 mark could nullify the downward implications of the prior week’s selling pressure, as well as the potential reversal signal from yesterday’s doji.

For astute investors, closely monitoring the pre-market activity is advised. The Russell 2000 is currently positioned as the bullish contender to observe, presenting ample opportunities for upside movements. Capitalizing on dips in this index could prove beneficial for traders. Nevertheless, a weak pre-market showing might spell trouble for S&P 500 and Nasdaq investors, especially as money seems to be flowing towards small-cap stocks. That said, should the S&P 500 and Nasdaq manage to close above yesterday’s peak levels by the end of the trading day, the looming threat of a doji reversal would lose its potency.