Today’s Chart of the Day was shared on Twitter by Michael Kahn (@mnkahn). It's a daily bar chart of the Small-Cap Russell 2000 index ETF, $IWM. Michael points out that Small-Caps are breaking out from a key resistance level today. As you can see from the chart, the $160 level has been a brick wall for $IWM. Price tested and failed at this level several times this year. $IWM is still trading about 6% below the all-time high that it made in August 2018; however, today's breakout is a big win for the bulls. Small-Caps spent the majority of 2019 underperforming their Large-Cap peers. This underperformance became a significant part of the bear case for US equities. Bulls typically want to see Small-Caps leading as it demonstrates risk-appetitie among investors. There's not much resistance for $IWM until it reaches the former highs around $170-173. Last month, we highlighted the fact that Small-Caps tend to pick-up strength around this time of year. It seems as though the stars are aligned for Small-Caps to head higher in the near-term.
Getting The Chart Report is as Easy as 1, 2, 3!
Enter your email address, check your inbox, and then relax and absorb all the amazing charts and analysis packed into your new favorite daily newsletter!