Chart of the Day - Thursday, September 18, 2025

• The Russell 2000 ($IWM) finally broke out with authority today, printing its first all-time high since November 2021. It went nearly four years, or 969 trading days, marking it the second-longest drawdown on record.
   
• As Mike notes, the relative strength behind today's milestone was just as impressive. $IWM outpaced $SPY by +2.0%, marking the second-best day of the year, as the ratio ($IWM/$SPY) notched a seven-month high. 
   
• Investors have generally reduced or abandoned exposure to Small Caps, following years of harsh underperformance, but $IWM has beaten $SPY by +5.5% since the April lows. Rotation could become more pronounced now that $IWM is finally unburdened by overhead supply. 
   

The Takeaway: The Russell 2000 ($IWM)  broke out for the first time in nearly four years today, ending the second-longest drawdown on record. Today's move came on relative strength with $IWM posting its second-best day of the year versus $SPY. Rotation could easily continue with the index finally in uncharted territory.