Chart of the Day - Tuesday, June 3, 2025

June 3, 2025
Patrick Dunuwila

Chart of the Day


🏆  Today's Chart of the Day was shared by Ian McMillan (@the_chart_life). 
 

  • Small Caps led the charge today, with the Russell 2000 ($IWM) gaining +1.6%. While $IWM has lagged across most time frames, it’s positioned for a meaningful rebound on an absolute basis.
     
  • Ian points out that $IWM is testing the AVWAP from the all-time highs, after cracking a six-month downtrend line today. Clearing this confluence of resistance would potentially unlock a new leg higher. 
     
  • Bulls would welcome further participation from Small Caps as a sign of improving risk appetite for stocks. Smalls don’t necessarily need to lead; they just need to participate more.  
     

The Takeaway: The Russell 2000 ($IWM) is testing a six-month downtrend line and the AVWAP from its all-time highs. Clearing this area of resistance would signal improving risk appetite and open the door to a potential leg higher.

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