🏆 Today's Chart of the Day was shared by Amanda Zmolek (@AmandaZmolek).
- The Russell 2000 ($IWM) just logged its best three-day gain since the election, surging +7.0%. Small-Caps are leading the bounce, as $NVDA and other heavyweights like $MSFT and $ORCL have held back the Large-Cap indices.
- Bulls were briefly trapped below $242 after a highly anticipated breakout failed to stick above the 2021/2024 highs. However, price has reclaimed this key level while retracing more than two-thirds of the recent pullback.
- A sharp bounce like this builds momentum rather than a slow grind through overhead supply. After an -8.5% shakeout, $IWM now sits -2.1% below record highs as we enter the best time of year for Small Caps.
The Takeaway: $IWM just logged its best three-day rally in more than a year. Most of the damage has been repaired, with price back above the former highs.
