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The rally in small caps is likely far from over even with the big gains so far

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Small caps are up more than 20% since the start of November, and they should still lead the broad market higher into 2021.

"If you look at the Russell 2000, it's up 90% from the March 18 low. We now have two-thirds of the Russell 2000 trading 10% or more above their 200-day moving average," said Jefferies equity strategist Steven DeSanctis. "The last time we saw that was September, 2009. Here, we had the big downturn like we did in '08/'09. We had January, February, March and now we're exploding to the upside."

The Russell 2000 was lower Wednesday, off 0.8% to 1,902.

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