Small-cap stocks have been hit almost twice as hard as the S&P 500, which has fallen more than 5 percent this year. The Russell 2000 has slid 11 percent, and according to Oppenheimer head technician Ari Wald, that may continue for some time.
Wald said the weakness in small-cap stocks is part of a rotation into large-cap names, amid a broader secular bull market.
"We think this is not only going to last for the coming months but potentially for the coming years," Wald said Wednesday on CNBC's "Trading Nation." "[It's] very consistent with the 1980s and 1990s secular bull market, all led by the S&P 500 on the upside."
Despite a bounce in stocks this week, Wald said the S&P 500 and the Russell 2000 will need to see some trend stabilization for a sustained rally. For small-cap stocks, Wald said resistance should come in around the 1,060 level.