The VIX hit new lows for the year today with a low of $13.64 before it managed to recover a bit and close at $14. This might be a little cause for concern going forward as long volatility historically has been a good trade when the VIX gets this low. But, volatility can also remain low for long periods of time so there's nothing to be alarmed about yet.
As for today, small caps lagged the rest of the markets significantly as IWM closed down 0.59% while QQQ closed up 0.47% and SPY closed up 0.46%. Tomorrow we have a half trading day for Christmas Eve with markets closing at 1:00 PM Eastern and markets are closed all day on Thursday for Christmas so I wouldn't expect much to happen tomorrow.
IWM pulled back right down to the daily uptrend support at about $251.50 ($251.46 low) that I mentioned in yesterday's update. That support did hold, but it was a weak finish again. For tomorrow that uptrend support is at about $252.65, and it closed at $252.08 today, so we would need to see a bit of a gap up to remain in this current uptrend without starting a new trend. It can still close above it even if it doesn't open above it, in which case it would put in a failed breakdown. An open below $252.65 means it will be resistance on a rally attempt. But even if we get a close below this current uptrend it would still start a new uptrend so there's not really anything to be concerned about.
QQQ opened below its daily uptrend support from yesterday but did finish strong and it still starts a new uptrend here (white channel). There may be room to pull back in this uptrend, but it still wouldn't be any cause for concern right now.
And for SPY it continues to trade in this large uptrend and nothing has really changed for it here
