"Technical Analyst Predicts Inflection Point for Momentum Trade as Stocks Surge"

Chief market technician Jonathan Krinsky warns that the momentum trade, which has been dominant in the stock market, is likely nearing an inflection point, as it appears overdone. The potential catalyst for this could be the U.S. consumer price index data, with economists forecasting a drop below 3%, potentially causing stock market jitters. Krinsky suggests that a momentum unwind may benefit small-cap stocks, which have lagged, and also highlights overlooked mid-caps close to testing their all-time highs. Additionally, he identifies stocks with constructive charts and high short interest, such as Academy Sports & Outdoors, Camping World, ETSY, and Sonic Automotive, as potential opportunities.