# Big Tech Breaking Down?

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Hey, Ross here:

Is Big Tech breaking down?

Let’s take a look.

**Chart of the Day**

![](https://stocksurgedaily.com/wp-content/uploads/2026/06/image-24-1024x515.png)

This is the Magnificent 7 ETF.

It’s now down about 11% from its recent high, and lower by 3.5% on a year-to-date basis.

Meanwhile, look at XMAG – an ETF which tracks the S&P 500 _minus_ the Magnificent 7.

Think of it as the S&P 493.

![](https://stocksurgedaily.com/wp-content/uploads/2026/06/image-26-1024x513.png)

And while it pulled back from its recent high yesterday, it’s still nearly 13% higher on a year-to-date basis.

In other words, the S&P 493 is _trouncing_ the Big Tech Mag 7.

The smaller, less popular stocks are winning.

Now, of course, you can say that the S&P 493 are also large-cap stocks. Fair enough.

But take a look at the third chart below.

![](https://stocksurgedaily.com/wp-content/uploads/2026/06/image-25-1024x502.png)

This IWM/IWB…

The ratio between the small-cap Russell 2000 and the mid/large-cap Russell 1000.

As you can see, this ratio has just broken out past a clear resistance level…

Meaning small-caps have just blown into an area of outperformance.

I think now is a great time to target these smaller stocks.

But there’s an important caveat to understand first.

I explain below.

## Insight of the Day

**You MUST pick and trade small-caps**.

Plenty of investors out there just dollar cost average into the S&P 500.

You’ll get average returns, but it’s a decent option – especially for your long-term retirement accounts.

But when it comes to small caps, I don’t recommend you do that.

You see, the truth is – most small-cap companies are trash.

The good ones that rise to the top eventually outgrow their small-cap status…

Meaning by definition, small-cap indexes are the “bottom of the barrel”.

That’s why I believe you MUST pick and trade small caps – you can’t hold them long term.

The problem is, of course, there are literally thousands of small-caps stocks out there…

Many of which have little to no analyst coverage and information.

They are truly “underground” stocks.

I’ll be explaining more on how to target the highest-potential “underground” trades later this week…

So make sure you keep an eye out for that.

In the meantime…

Here’s **[the $3 stock I’m buying even as Wall Street is panic selling.](https://www.youtube.com/watch?v=f7kDMT9u2E8)**

## **Customer Story of the Day**

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Ross Givens  
Editor, Stock Surge Daily