Piper Sandler's Craig Johnson shares his bull case for small caps

Market Trends & Investment Opportunities - Piper Sandler highlights the potential outperformance of small and mid-cap stocks, noting a classic inverted head and shoulders pattern in the Russell 2000 index [2] - The Russell 2000 index could potentially reach new highs, with measured objectives around 2450 and 2600, suggesting significant upside [3] - A potential Federal Reserve rate cut could serve as a catalyst to further boost small and mid-cap stock performance [3] - The fastest growth opportunities are currently observed in the small and mid-cap sectors [7] Company Analysis & Stock Performance - Unity Software and other stocks "below the surface" are showing signs of improvement [2] - MongoDB experienced a significant downtrend reversal on its weekly chart after earnings, with a technical target of approximately $524, representing about 67% upside [4] - United Health's stock has been cut in half and faces potential pressure from tax loss selling, with no technical reasons to buy at the current level [5][6] Market Sentiment & Concerns - Many investors were caught off guard by the market's movements in April and are currently "fighting the tape" [8] - Negative sentiment persists among traders and AI models, indicating a "climbing the wall of worry" scenario [9]